Cyberattacks are Number One Threat

According to Federal Reserve Chairman JeromePowell, Cyberattacks are now the main threat to the global financial system, even more so than the lending and liquidity risks that led to the 2008 financial crisis.The assessment by one of the world’s leading banking officials underscores how the threat of hacking has become a major concern in the highest reaches of government.

Powell said the world has changed substantially since the days of the Great Recession. He also said that the risk that the company considers is cyber risk. Many government agencies, including the Fed and all large private businesses and all large private financial companies, in particular, monitor very carefully, invest heavily in.The federal reserve chairman said that if hackers managed to shut down a major payment processor which is hamstringing the flow of money from one financial institution to another. That could shut down sectors or even broad swaths of the financial system.

Governments and private businesses are increasingly on guard against those types of threats. The company spend so much time and energy and money guarding against these things. There are cyber-attacks every day on all major institutions. The government is working hard on that. So are all the private sector companies. There’s a lot of effort going in to deal with those threats.

The United States plans to launch a digital US currency in response to moves by China to do the same. Officials are thinking about the issue and there are studies taking place all around the country. Currently, no decision has been made regarding digital currency because it is not clear whether digital dollars would help serve Americans.