The U.S. House of Representatives Financial Services Committee (FSC) has just announced that it will be hosting a hearing titled “The Future of Money: Digital Currency” on Wednesday, July 18.
Coindesk has confirmed that the hearing will be live-streamed on the Financial Services Committee website, although we are still waiting to hear who will be providing evidence about cryptocurrencies.
In the past, FSC hearings have focused on fraudulent investment and the use of cryptocurrency in financing terrorism, but it seems that next week the will switch the focus to discussing the future of cryptocurrencies as form of money.
This comes at a time when governments and central banks are looking more seriously at crypto as a monetary tool and the fact that the Bank of International Settlements, which some consider to be the ‘central bank to central banks’, proposed that cryptocurrencies backed by central banks could in fact increase the speed of runs on a bank during periods of financial instability.
Some central banks have already given their opinion on crypto as a form of money: Finland’s central bank called crypto “the great illusion” and “not currencies at all but rather accounting systems for non-existent assets.” Canada’s central bank has also published a report on digital currencies, but concluded that there was a compelling case for a Central Bank Digital Currency to support financial inclusion in developing economies, but that in an advanced economy, like Canada, it offered few advantages.
The jury is still out on crytpocurrency as a central bank supported ‘form of money’, but perhaps next Wednesday we will have a clearer idea about where the U.S. is heading to with crypto.