What stops a Federal Reserve crypto scheme of their own?

[QuestionAuthority]

Why would they do that? They already have an electronic system in place. Are you suggesting they replace FedACH and FedGlobal with something else? It would have to be something that worked a hell of a lot better than Bitcoin. The Bitcoin network would be crushed by the massive amount of transactions that FedACH and FedGlobal process in a day. That's 60 million transactions a day with a total value of 2 trillion dollars.

The Federal Reserve Banks, through the FedACH system, are collectively the nation's largest automated clearing house operator, and in 2005 processed 60% of commercial interbank ACH transactions. The Electronic Payments Network (EPN), the only private-sector ACH operator in the U.S., processed the remaining 40%. EPN and the Reserve Banks rely on each other for the processing of some transactions when either party to the transaction is not their customer. These interoperator transactions are settled by the Reserve Banks

[Beliathon]

they are subject to oversight by U.S. congress.

Aren't we all.... subjects, in this neo-feudal capitalist caste system?

[haploid23]

Nothing is to stop the Feds from making their own coin, but this would set precedence that crypto would be ok to use in all aspects. Except the nature of crypto, especially the semi-anonymity of it, would directly conflict with other government branch securities, so I don't see this happening.

If it were to happen, no one will support it anyways, seeing how they are to only serve the interest of the government.

[Swordsoffreedom]

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.

To answer the question What stops a Federal Reserve crypto scheme of their own the problem is that they would have to ensure a consistent rate of supply and back it up to their own currency.

In essence there can never be 21 million US dollars in circulation as the press could not and is not able to base it off a consistent supply basically it is incredibly difficult to print money in that system or do fractional reserve banking.

[Buffer Overflow]

What would be the point of a centralised decentralised coin?

[jc01480]

What would be the point of a centralised decentralised coin?

Implied legitimacy, trust, less volatility, accountability, essentially all the things that Joe and Susie citizen are skeptical about with current crypto-currency models.  

Edit: and it might be the only way to revive the USD against the renminbi.

[Este Nuno]

What would be the point of a centralised decentralised coin?

Implied legitimacy, trust, less volatility, accountability, essentially all the things that Joe and Susie citizen are skeptical about with current crypto-currency models. 

Edit: and it might be the only way to revive the USD against the renminbi.

And like I was saying in another post up there imagine what kind of development could be put in to a coin like that. Imagine a team of 200 top tier programmers working full time on the software. It would be amazing. And since it would be open source the benefit to the community(for study and forking purposes) would be amazing.

[btcxyzzz]

Question is what's stopping them to print enough USD to buy them all, or constantly buying them so centralizing it and ruining it that way...

[spazzdla]

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.

No one would want it.. no one.

[Ron~Popeil]

Question is what's stopping them to print enough USD to buy them all, or constantly buying them so centralizing it and ruining it that way...

Holding your coins for starters. They don't need to buy them up when they can just seize them from places like silk road etc.

[TopherB]

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.

Because a centralized decentralized monetary system makes no sense. And if they don't centralize it than it becomes difficult - other than by whatever initial coins they deem as theirs - to make a profit of it. And if they aren't doing that then they are just undercutting their other profit making mechanisms.

If they do try to profitize it than other alt coins make more sense and as the Fed's indirect regulatory power extends only to the US the other cheaper coins would flourish overseas and underground in the US.

[Stephen Gornick]

Because a centralized decentralized monetary system makes no sense.

Bingo!   The reason Bitcoin exists is that it is a payment system that is from from censorship (i.e., restrictions on who can receive payments or what the payments are for) and from corruption (i.e., impose taxes on transactions or the money supply, confiscate the wallet of a lawbreaker, etc.)

The Fed already has electronic monetary systems.  A coin that competes against their own systems would not be welcomed.

[lilfiend]

bitcoin is p2p decentralized, all other fiat currencies are centralized, totally different ways to achieve the same thing, and that is a fiat currency.

IMO centralized currencies should have to be backed by gold/sliver, but it is what it is.

[greenlion]

What I would recommend to the OP is just look into the problem that Bitcoin is designed to solve in the first place. Read the Satoshi whitepaper. Then go back and re-evaluate whether the original question makes any sense whatsoever in the first place.

There might be something vaguely similar but unrelated to the idea of the Fed actually launching a coin, but that would be central banks and/or other depository institutions actually holding Bitcoin as assets on their balance sheets, but that's a totally different thing and quite far into the future if at all.

[johnyj]

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.

And U.S. congress simply don't understand how money works. They allowed the removal of gold standard, since then reserve bankers are printing money like crazy to buy everything they can

[Ron~Popeil]

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.

And U.S. congress simply don't understand how money works. They allowed the removal of gold standard, since then reserve bankers are printing money like crazy to buy everything they can

Nor does the fed, the executive branch or the judiciary. We are lead by looters and their financial backers.

[justusranvier]

And U.S. congress simply don't understand how money works. They allowed the removal of gold standard, since then reserve bankers are printing money like crazy to buy everything they can

Of course they understand how money works. Going off the gold standard made them and their cronies fabulously wealthy.

The monetary system is working perfectly (for them).

[Ron~Popeil]

And U.S. congress simply don't understand how money works. They allowed the removal of gold standard, since then reserve bankers are printing money like crazy to buy everything they can

Of course they understand how money works. Going off the gold standard made them and their cronies fabulously wealthy.

The monetary system is working perfectly (for them).

They understand how their money works. They will be trying to play catch up with bit coin for quite some time.

[miffman]

The thing is, bitcoin is already letting people know how much freedom they've been missing. It's never going to go their way unless they let go.

[CoolBliss]

The important thing about Bitcoin is that it is decentralized. There is no way the Fed would release an open source decentralized currency that anyone could mine equally. The Fed exists to manipulate the money supply. The whole point of Bitcoin is that no one can manipulate the money supply. No coin controlled by any single entity can ever be Bitcoin.