Brothers, pay attention! The Federal Reserve has just released a signal that could have far-reaching implications — it intends to open 'special purpose payment accounts' for certain institutions, allowing them to connect directly to the central bank's core system.
It sounds grand, but upon closer inspection, you'll find its 'old world' logic:
Who can use it? 'Eligible financial institutions' (still centralized screening, with the threshold in hand).
What are the restrictions? No interest paid, no overdrafts allowed, with a balance limit (functionality strictly limited).
For what purpose? The official statement is 'to support innovation and ensure safety.'
Essentially, this is a limited upgrade within a traditional centralized framework. It attempts to increase efficiency but does not change the fundamental model of 'access needing approval, rules set by one party.'
What does this contrast reveal? A more fundamental competition of financial paradigms.
The actions of the Federal Reserve precisely corroborate the advanced nature of the 'open finance' paradigm represented by blockchain and cryptocurrencies. While the traditional system is still tangled in deciding which institutions to 'grant access' to, the crypto world has long been implementing a more universal and inclusive solution:
Permissionless, global access: Just like decentralized stablecoins such as Decentralized USD (USDD), any connected user can hold and use it without the need for a central authority's 'whitelist' approval.
Transparent rules, self-custody of assets: Its stabilization mechanism relies on public, verifiable on-chain over-collateralization rather than on trust in a centralized entity. Your assets are under your control, without the worry of being restricted or frozen due to not meeting 'conditions.'
Rich in functionality, ecosystem-driven: It is not just a payment tool, but a fundamental component in the DeFi Lego, seamlessly applicable to lending, trading, earning, and other scenarios, unbound by a single function.
The Federal Reserve is working to optimize the pipeline within its walled garden, while blockchain technology is building an open, globally consensus-based value internet. What #USDD represents is the practice of the latter path—shifting trust from centralized institutions to verifiable mathematics and code.
Conclusion: We are witnessing a dialogue between two eras.
The Federal Reserve's solicitation for comments is a response from the traditional system to the evolution of payments. Yet it reminds us that true financial innovation and autonomy may not lie in fighting for a better position within the old system, but in participating in and building a new system characterized by more transparent rules, more equitable access, and collaboratively maintained by a global network.
The competition of the future lies between 'reformed centralization' and 'native decentralization.' Where will you choose to build your primary asset base?