The post This is Federal Reserve’s response to BRICS Pay appeared on BitcoinEthereumNews.com.

The global financial landscape is undergoing a radical transformation, and the Fed is not taking a back seat. The emergence of BRICS Pay, a digital payment system from the BRICS economic alliance, has sparked a fierce reaction from the US Central Bank. Michael Barr, a Federal Reserve official, has opened up about the status of a potential digital dollar and the direction the Fed might recommend to the US Central Bank. Currently, the Fed has not made any official recommendations regarding the digital dollar. Yet, Barr emphasizes the critical importance of “learning from both domestic and international experimentation” to inform their eventual decision. The BRICS economic alliance, with its BRICS Pay system, is driving significant developments in the digital finance sector, and the Fed is paying close attention. The International Landscape and the Fed’s Stance The BRICS economic alliance, consisting of Brazil, Russia, India, China, and South Africa, has seen impressive growth and influence expansion, especially with its recent six-country expansion agreed upon during the 2023 summit. Its quest for a multipolar world has gained momentum, putting pressure on the US to respond strategically. With the launch of BRICS Pay, the US Central Bank is contemplating the development of its own digital dollar. Barr, representing the Fed, acknowledges the importance of understanding rapid technological advancements in the sector, both domestically and internationally. “Learning from both the domestic and international experimentation can aid decision-makers in understanding how we can best support responsible innovation that safeguards the safety and efficiency of the US payments system,” Barr asserts. The Fed is in the process of gathering data and insights from various domestic and international initiatives related to Central Bank Digital Currencies (CBDCs). The Fed’s Proactive Approach in a Changing World The unveiling of BRICS Pay isn’t the only development causing ripples in the…

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Filed under: News - @ October 29, 2023 7:46 pm