Reuters: Central Bank Digital Currency Is ‘Inevitable,’ says the Fed’s Patrick Harker
Patrick Harker, president of the Federal Reserve Bank, is confident that central bank digital currencies are inevitable. Harker expressed the idea that central banks — including the Federal Reserve — will inevitably release digital currencies. Still, Harker believes that the United States should not lead the way, given the dollar’s role as the world’s reserve currency and the need to test out new technologies. “It is inevitable... I think it is better for us to start getting our hands around it.” “I am looking at the next five years after that. What comes next? I do think it is something around digital currency.”
Vanguard Tests Blockchain Platform for Trading Currencies
The Vanguard Group is testing a blockchain-powered platform that will allow asset managers to trade currencies while avoiding the big investment banks.
Vanguard, is going after a piece of the global currency market that handles $6 trillion each day and is dominated by firms such as JPMorgan Chase and Deutsche Bank AG. The newly tested blockchain platform has been operational for over two months while handling several trades already. By entering the global currency market, Vanguard will unsettle some of the major investment banks that have ruled the sector for decades. Campbell Adams, a former senior currency trader at Deutsche Bank, believes this could happen if enough users join Vanguard’s platform. “In theory, it sounds great because you can reduce your costs if you can match directly with someone else who has a countervailing interest.” Vanguard, which has over $5 trillion in assets under management, is “currently piloting a project focused on improving the efficiency and reducing the risk of FX hedging,” a spokeswoman for the investment group said.