Powell Says US Won't Compete with China on CBDCs

..but Mastercard is building CBDC applications

Happy Thursday, Blockfolians

The Lede

There are many dimensions of this bull market. Bitcoin, of course with its macro inflation hedge narrative; Ethereum, leading the charge of DeFi; NFT’s making it all the way to SNL.

There is another dimension to this bull market that’s important however, and that is Central Bank Digital Currencies. China is moving full steam ahead, but the US is a little more hesitant. Yesterday at the FOMC presser, Fed Chairmain Jerome Powell said:

“Far more important to get it right than it is to do it fast. The currency that’s being used in China is not one that would work here. It’s one that really allows the government to see every payment for which it is used in real time.”

Now, on the one hand, we’re glad to see Powell calling out the surveillance as a problem. At the same time, we’d like to see the US embrace that as a whole.

Whatever the case, there is no shortage of momentum around a US digital dollar in the private sector. On their earnings call this week, Mastercard discussed their plans and collaborations on CBDCs in some depth, so clearly big companies are thinking this is the future, even if Powell remains cagey.

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Community Commentary

Big institutional news out of South Korea
Pain is the best teacher

A Really Big Number We Should Be Paying Attention To

$300,000,000

That’s the amount that Paxos - the team powering PayPal and Venmo’s crypto offering - just raised


Final Thought

Lol