Emphasizing the importance of digital transformation, New York Fed President John Williams shared the view that payments made by digital methods can have positive effects on the Fed's monetary policy and balance sheet.
In his speech at a conference held at Columbia University yesterday, Williams mentioned that technology is changing rapidly, while the central bank's main goal of ensuring financial stability remains unchanged. Accordingly, the NY Fed Chairman said that central bank digital currencies (CBCD) and fixed crypto assets backed by reliable fiat assets could be a viable tool to keep up with rapidly changing technology.
U.S. Senators want the U.S. Treasury to draft legislation to develop a CBDC. A CBDC, which will be managed by the US Fed, is welcomed as it will eliminate the waiting time for fund transfers and reduce transaction fees.
In March, the Biden administration issued an order to accelerate research on the development of a digital dollar. Some senators, who are among the advocates of the digital dollar, consider this issue important for the US to continue its dominance in global markets.
While more than 90 countries around the world continue their CBDC research, some have started piloting a central bank digital currency. The country that progresses the most in this regard is China, the biggest rival of the USA in the field of economy.
In the latest developments regarding the CBDC, China has decided to distribute digital yuan to revive the economy that has slowed down due to the pandemic in key regions of the country. With this decision, the Asian country will test its use in daily transactions while aiming to increase the adoption of the digital yuan.
Crusoe Energy to mine Bitcoin in the Middle East
Crusoe Energy has signed an agreement with the Oman Investment Authority (OIA) to mine crypto using natural gas in the Middle Eastern country.
Flammable gas requires combustion of excess gas or gas escaping from distribution tunnels to the atmosphere. While this is a standard process aimed at minimizing environmental and health hazards, it is still under scrutiny due to the dangerous carbon emissions in the combustion process.
According to Crusoe CEO Chase Lochmiller, the firm will open an office in Oman to manage its Bitcoin mining operations. Then, power generators and mining equipment will be deployed in designated areas to use the energy from the flaming gas.