🏦 [Analysis] The Fed should seize blockchain’s potential - Eswar Prasad

Eswar Prasad, Cornell professor and senior fellow at the Brookings Institute, argues for renewed investigation into a federal cryptocurrency. Distributed ledger technologies, to Prasad, are the crux of the matter. The efficiency and speed of cryptocurrency alternatives could harm the dollar, although never replace it. The dollar is dominant, but that is no excuse for lethargy. Prasad calls for blockchain technology to be applied to the dollar in a similar manner Sweden and Singapore have done. Both are using the technology to maintain their currencies dominance as the preferred method of payment . A blockchain dollar would deter illicit activity, be cheaper than printing, and increase both speed and efficiency, in turn making payments easier to conduct and verify. Lastly, a blockchain dollar would both better monetary policy, by increasing control of the money supply, and decrease financial volatility through central bank management.