As per recent reports, the Federal Reserve Economic Data (FRED) database has added four digital currencies lately.
The official FRED publication stated that crypto data recorded by Coinbase from 2014 to the current day would be added to the government database. It was further informed that the agency would be updating the data on a daily basis mainly for bitcoin, litecoin, Ethereum and bitcoin cash which are essentially the four crypto coins currently managed by Coinbase. The database operator will probably be including more crypto coins but only which are added by most significant exchange in America.
Although, the step is not a big change as the whole world is trying to adopt the new technology, yet it does show the outlook of government agencies towards digital currencies. Few experts believe that now regulators are more concerned about the crypto space and want to increase its legitimacy.
The FRED data has been considered important for economists and media platforms as it provides exclusive stats over different divisions of geo-economics events. Maintained by St. Louis Fed, it supplies information from the gross domestic product (GDP) to exchange rates.
Chief economist to Joe Biden, Jared Bernstein, has a positive review about the data he collected from the agency. He said, “To say ‘I love FRED’ is too weak, too glib. I depend on FRED. I count on FRED to help provide a better future for economic policy.”
The inclusion of crypto data is still limited, but it is enough to show the growth cyber coins have made by evolving from an underground asset to a growth factor in the global economy.
It is not the first time the government-backed institution has recognized virtual currencies as they have already published five crypto and blockchain-based articles since the advent of 2018. The information was tailored for people interested in crypto coins as it introduced blockchain, bitcoin, and other altcoins.
On the other hand, cryptocurrencies have still been gaining momentum even after the current decline in prices. They have also been backed by government authorities every now and then like when bitcoin and ethereum were excluded from the securities bracket by SEC.
The biggest crypto exchange recently opened a custody service which only aims to serve institutional investors. The venture requires a minimum crypto balance worth of $10 million. Thus, Coinbase is hoping to use institutional-grade money to invest in the crypto space which will work as cold storage for digital assets.
CEO of Coinbase, Brian Armstrong, said, “Over 100 hedge funds have been created in the past year exclusively to trade digital currency. By some estimates, there is $10b of institutional money waiting on the sidelines to invest in digital currency today…”
Coming back to FRED, the latest decision is bound to send a positive vibe in the crypto community and attract new investors in the sphere. Eventually, more money poured into the market will uplift bitcoin’s value and benefit every financer. It is only a matter of time till we start to feel the results of Coinbase and the US government’s minimal collaboration.