The Fed has done a sudden reversal of the mind and is calling for Wall Street to put systems in place that will allow banks and other standard financial institutions to better deal with the growing crypto space.
The Fed Thinks Crypto Should Be Studied
The Fed appears to have been hellbent as of late on bringing the crypto space to its knees. The organization has done nothing but hike interest rates over the past few months as a means of trying to lower inflation. However, these rates have done nothing but bring crypto prices down. The prices of food and gasoline are still at all-time highs, people cannot afford houses or vehicles like they could just a year ago, and bitcoin and many of its digital counterparts are traveling through the doldrums.
But clearly the Fed is smart enough to realize this space is not going anywhere. Those in charge believe that there are possibilities to make money and bring more investors into a place of knowing when it comes to developing the right crypto “opportunities” as the organization says, and the Fed wants Wall Street and other major financial players to be able to deal with crypto accordingly as it gets bigger.
In a statement, the Fed announced:
The emerging crypto asset sector presents potential opportunities to banking organizations, their customers, and the overall financial system. Crypto-related activities may also pose risks related to safety and soundness, consumer protection, and financial stability.
The crypto space has gone through one of its most downtrodden and volatile periods. Bitcoin, for example, has lost close to 70 percent of its overall value since hitting $68,000 in November of last year. Now, the asset is struggling to maintain a position in the low $20K region, while the crypto space has lost more than $2 trillion in valuation.
With elements like this in place, one would assume that a standard monetary agency like the Fed would be turning its back on the crypto space, though it appears many individuals within the organization see it as something that can present many chances for investors and the country alike.
Lael Brainard – the Fed vice chair – explained in a recent interview:
The new guidelines provide a consistent and transparent process to evaluate requests for Federal Reserve accounts and access to payment services in order to support a safe, inclusive, and innovative payment system.
Has BTC Reached a Better Place?
Martin Hiesboeck – the head of blockchain and research at crypto platform Uphold – also threw his two cents into the mix, commenting:
Bitcoin has a hard time going anywhere at this moment, but looking at it from a long-term perspective, this seems to be an accumulation point, and whether bitcoin drops further doesn’t matter much for the millions who believe in it. The fact it hasn’t dropped significantly over the past weeks as we digested some really bad news is a turning point.