The chairman of the Fed, Powell, updates the progress of the digital dollar and says: I don't think we are lagging behind to CBDC regulation
The chairman of the Fed, Powell, updates the progress of the digital dollar and says: I don't think we are lagging behind to CBDC regulation
The chairman of the Federal Reserve, Jerome Powell, shared the progress of the work of the Fed on a digital central bank currency (CBDC), the digital dollar. "We are proactively working on evaluating whether and in what form a CBDC should be issued," he said, adding that the USA had not fallen behind other countries in this area.
Fed boss Jerome Powell on the progress of the US CBDC
The US Federal Reserve has not yet made a decision whether it should bring a digital dollar to the market, the Fed, Jerome Powell, announced on Wednesday at CNBC.
He was asked for an update of the work of the Fed to the digital currency of the central bank (CBDC). "We think it is very important that the central bank maintains a stable currency and payment system for the benefit of the public. This is one of our jobs," Powell began. "We also live in a time of transformative innovations around digital payments and have to ensure that the Fed can continue to offer the public a stable and trustworthy currency and payment system."
he continued: "There are extensive private innovations - many of which take place outside of the regulatory framework. Innovation is fantastic. Our economy lives from innovation. But when it comes to public funds, we have to ensure that the corresponding regulatory protective measures are available, and in some cases they really are not." The chairman of the Federal Reserve added:
Against this background and with the creation of countless private currencies and currency -like products, we are proactively working on evaluating whether and if so, in what form a CBDC should be output.
Powell said: "We intend to publish a discussion paper that will be the basis for the time of public commitment and commitment with many different groups, including the elected official, on these topics. We believe that it is our duty to do the work on technology and public guidelines in order to form a basis for a well -founded decision."
he added: "The ultimate test that we will apply when evaluating a digital central bank currency and other digital innovations is whether the clear tangible advantages outweigh the costs and risks."
The Fed chairman continued to talk about the current work of the Fed to CBDC and explained:
We really have two broad workflows, of which one is really technology, both on the board and in the work of the Federal Reserve Bank of Boston with.
"In addition, we are currently investing massively in building a new settlement system for instant payment in the USA. It will be the first so much expansion of our core payment system since the 1970s. We found that this is very convincing for consumers and companies and that all financial institutions have access to the payment system," he continued.
Powell Castle: "The bottom line is that we have not made a decision about the CBDC, but we will shortly issue a discussion paper to form the basis for this public interaction that we will have."
at the time, 81 countries examine according to the CBDC tracker of the geoeconomics Center of the Atlantic Council the issue of own digital currencies. Some countries have already published a CBDC, including China that has intensively tested its digital Yuan.
Powell was further asked whether he was "worried" that the United States is falling behind in the field of digital central bank currencies. He replied:
I don't think we're behind. I think it is important to do this correctly than to do it quickly. We are the reserve currency in the world. I think we are in a good place to carry out this analysis and make this decision that will be a government -wide decision.
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