CEX — The Federal Reserve’s Secret Weapon To Keep $USD The Worlds Reserve Currency

It’s no secret that the federal reserve has been watching the cryptocurrency world with a close eye. And, this week, they made a move that is sure to shake up the crypto world. They created a centralized exchange that will become the strongest liquidity provider for L1 blockchains in the world. This is a huge step for them, the United States, the world, and it could have major implications for the crypto market as a whole.

Imagine the headlines if this were the case? There has been a lot of debate recently about the need for the Federal Reserve to create a CBDC to keep the dollar the world’s reserve currency. While I agree that this is part of the equation, are we not already mostly there? Are not the vast majority of the dollars in circulation already digital? Does the Federal Reserve want to be the next Central Bank to jump on the bandwagon of Blockchain and CDBC with the only strategy being to capitalize on the hype in the space? I see this as nothing more than a marketing attempt at trying to remain relevant using the zeitgeist, that only pushes the real discussion down the road slightly further until we come to these crossroads again. The Federal Reserve needs to make big moves and make them now to remain relevant into the unforeseen future. The federal reserve would have the opportunity to flex and move with the rapidly changing crypto market giving them the opportunity to keep the dollar at the forefront of this changing financial system. They could also make huge profits from trading fees reducing the need for higher interest rates.

This type of move by the federal reserve would be sure to cause a lot of debate in the crypto world. Some people will be thrilled about this development, while others will see it as a negative sign for the future of cryptocurrencies. Only time would tell who is right! The point here is that fortune favors the bold. Becoming the next CBDC is not bold — it’s at best following in the steps of China who is already light years ahead of the United States in this category. We need bold strokes and we need them now. In any case, it’s clear that centralized exchanges are becoming more and more important in the crypto world and, if the federal reserve gets into the game, things will get interesting quickly!

What are the pros and cons to this type of potential move by the FED? Would it weaken or strengthen the dollar?

What do you think about this idea? Let us know in the comments.