The U.S. Federal Reserve’s opinion on Bitcoin

By Daniel Zo Bitcoin, Federal Reserve

So far, Bitcoin has had a lot of success in the private sectors, but chances are that public institutions and governments will start using the currency soon as well. In the case that you’re wondering why this is so, then you may be surprised to know that the worldwide trust percentage in the cryptocurrency is slowly increasing, which means that public institutions will soon invest into the coin in order to keep up with the ever-changing financial system.

Bitcoin price goes up

What’s surprising is that not long ago, the Federal Reserve has released a Bitcoin strategy report, outlining ideas that could be put into practice in order to improve the U.S. payment system. This proves that even if governments feel exposed in front of the cryptocurrency, and many of them may be fighting it subliminally because of its possible effects on the national currencies, institutions still trust the coin and would like to have a sort of advantage in the case that it overpowers traditional fiat.

With this in mind, the paper mentioned above states that:

"A digital transfer vehicle was not considered[sic] a sufficiently mature technology… but was identified for further exploration and monitoring given significant interest in the marketplace.”

To make things better to understand, ‘digital transfer vehicle’ directly refers to the cryptocurrency, so that paragraph states that even if the technology is still not mature enough, further monitoring will take place, because of its sprout in popularity.

Based on this, a couple of questions are raised referring to how the U.S. government will really monitor the coin together with what they’ll do in order to get an advantage over the market. With this factor in mind, keeping a large reserve of the cryptocurrency stored, represents a factor that can grant a certain person or institution more influence over it, which may be exactly what governments from all around the world will start doing soon, as an effort to ensure that they still have an important role in the case that Bitcoin becomes the world’s universal currency, and the traditional ones are overpowered.

Based on everything that has been outlined so far, it becomes clear that the U.S. Federal Reserve, and consequently many other public institutions are interested in exploring the cryptocurrency trend, while learning more about it and trying hard to get an influence over the market. The goals that they have so far may not bring any harm upon the coin, but in the case that the users do not fight hard against regulation, there is a slight chance that the decentralized system that everyone likes will be put under stress.