What stops a Federal Reserve crypto scheme of their own?

[jc01480]

Please discuss.  I mentioned it in another thread and felt compelled to raise a new topic.

Just a little heads up, folks.  They are not subject to FOIA like a government agency.  But they have all government agencies at their disposal.  So, why hasn't anyone pointed out the obvious.  The medium they choose can be theirs, BTC, alt, or Doge (for the love of dogs everywhere).  This is brewing as we speak.

[beetcoin]

people not wanting it, because it's controlled on the federal level?

[jc01480]

people not wanting it, because it's controlled on the federal level?

They are a private corporation that influences money policy in US.  No government reach whatsoever.

[beetcoin]

people not wanting it, because it's controlled on the federal level?

They are a private corporation that influences money policy in US.  No government reach whatsoever.

they are a private corporation but also tethered to government. they are subject to oversight by U.S. congress.

[cbeast]

They did such a great job with the dollar, I'm sure the world will welcome it with open wallets... not.

[freedombit]

Please discuss.  I mentioned it in another thread and felt compelled to raise a new topic.

Nothing. It all boils down to trust in the end. Let's see what rules they apply to the crypto and then we'll have an idea of the worth. The more free, the more fungible, the more valuable. However, coming from a 3rd party known to have issues, it may lessen its value. Just depends on how initial distributions work.

[jc01480]

Just FYI, my source is weak, but the jest is they are doing this very thing.  1BTC = 1USD.  Ask your local congressional reps and state reps to inquire.  

[jc01480]

And thank you all for your input.

[DGulari]

Just FYI, my source is weak, but the jest is they are doing this very thing.  1BTC = 1USD.  Ask your local congressional reps and state reps to inquire.  

Excellent.  I for one hope they do it. 

[Ron~Popeil]

Are we suggesting that the fed is all ready behind a particular crypto currency or planning to take one over?

[justusranvier]

Good. They can implement blacklists, and asset forfeiture, and demurrage, and identity tracking, and then people can stop suggesting that Bitcoin add those things because we can tell them to just use Fedcoin if that's what they want.

[Este Nuno]

Wouldn't things like colored coins facilitate something like a federal reserve in bitcoin?

Or am I misunderstanding the application of colored coins in this case?

An entity could issue colored coins that are backed by debt, could they not?

[cbeast]

Wouldn't things like colored coins facilitate something like a federal reserve in bitcoin?

Or am I misunderstanding the application of colored coins in this case?

An entity could issue colored coins that are backed by debt, could they not?

Indeed they can.

[Pente]

Just imagine if the Federal Reserve started their own cryptocurrency, created a FedChain, blessed the banks to use it, ect. I can't imagine the limitations on it, but I am sure they would be bad. Probably would be a way for the feds to create their own coins in the protocol.

Soon there would online exchanges like Cryptsy.com that would allow you to quickly switch your FedCoins to BitCoins.
 I think ultimately, this would actually accelerate the fall of the dollar.

[keithers]

What has drawn a lot of people to cryptos is its decentralized nature. The Fed would just be in essence creating a digital USD. Don't think it would spark too much support.

[Este Nuno]

Just imagine if the Federal Reserve started their own cryptocurrency, created a FedChain, blessed the banks to use it, ect. I can't imagine the limitations on it, but I am sure they would be bad. Probably would be a way for the feds to create their own coins in the protocol.

Soon there would online exchanges like Cryptsy.com that would allow you to quickly switch your FedCoins to BitCoins.
 I think ultimately, this would actually accelerate the fall of the dollar.

What has drawn a lot of people to cryptos is its decentralized nature. The Fed would just be in essence creating a digital USD. Don't think it would spark too much support.

If I were the Fed I would be working on creating cryptocurrency. It might mean dollars are used less but the average person would be much more open to using "Fedcoin" rather than bitcoin I would think. I don't think Joe Sixpack cares too much about decentralisation.

[Soros Shorts]

What features would this Fed coin have that would have people rushing to use it? If it is going to be centralized why even have a crypto coin?

[greenlion]

It doesn't make any sense whatsoever for them to have a satoshi-style system. Being a centralized third-party issuer that controls access, they experience none of the inherent problems that a cryptocurrency was conceived to solve in the first place. A "Fedcoin" wouldn't be a cryptocurrency, it would be a database.

[shawshankinmate37927]

Just imagine if the Federal Reserve started their own cryptocurrency, created a FedChain, blessed the banks to use it, ect. I can't imagine the limitations on it, but I am sure they would be bad. Probably would be a way for the feds to create their own coins in the protocol.

Soon there would online exchanges like Cryptsy.com that would allow you to quickly switch your FedCoins to BitCoins.
 I think ultimately, this would actually accelerate the fall of the dollar.

This is why the Federal Reserve will never create a Fedcoin.  It would make the escape from fiat much easier.

[Este Nuno]

What features would this Fed coin have that would have people rushing to use it? If it is going to be centralized why even have a crypto coin?

It doesn't make any sense whatsoever for them to have a satoshi-style system. Being a centralized third-party issuer that controls access, they experience none of the inherent problems that a cryptocurrency was conceived to solve in the first place. A "Fedcoin" wouldn't be a cryptocurrency, it would be a database.

They could create a coin to 'hedge their bets' so to speak with the dollar. The advantages that 'Fedcoin' would have is being backed by the government, meaning the core developers would be paid by the government, instead of what we have with the bitcoin foundation. They could have hundreds of paid developers constantly iterating a superior software product. With the type of programmers they could attract they could take every advantage of altcoins like faster confirms and cpu mining. As well as have decentralised exchanges with the free flow of fiat to fedcoin(I don't know exactly how they would do this, but obviously the government controls fiat, so if they wanted to open this up they could).

There's lots of options for them if they chose to do something like this. I think if they wanted to establish a coin with clear advantages over bitcoin, they could. They have the resources.

Of course for a lot of people it would all be meaningless since their primary motivation for using bitcoin is to detach themselves from government control, but the majority of people aren't necessarily interested in that.

I don't think the Fed or the government would actually do a project like this. But they probably should. Even just as a reference type of thing to help propel the technology forward.