US Finance Minister Yellen says that she is undecided whether the Fed should spend digital currencies-regulation
US Finance Minister Yellen says that she is undecided whether the Fed should spend digital currencies-regulation
US finance minister Janet Yellen says that she has not yet decided whether the Fed should issue a digital central bank currency (CBDC). "A digital dollar has some advantages," said Yellen, but noted that "there are also considerable costs".
Janet Yellen did not decide whether the Fed should develop a digital dollar
Finance Minister Janet Yellen said on Thursday in an interview at the Reuter's Next Conference that she had not yet gotten an opinion on whether the Federal Reserve should create a digital dollar.
She explained that the decision would require a broad consensus between congress, central bank and white house. The finance minister believes that more studies on the advantages and disadvantages of a digital central bank currency (CBDC) are required in the USA, including their effects on the banking system. Yellen said:
I see both advantages and disadvantages in doing it. And my own opinion is not formed.
According to the Geoeconomics Center of the Atlantic Council, 87 countries (which represent over 90 % of the global GDP) are currently examining a CBDC.
The governor of the US Federal Reserve, Lael Brainard, asked the Fed to urgently develop a digital dollar. In July, she said she couldn't understand why the United States is not actively developing a digital central bank currency while China and other countries do it. Brainard is the candidate of President Joe Biden as deputy chairman of the Federal Reserve.
Yellen, who acted as chairman of the Federal Reserve from 2014 to 2018, said that the US Federal Reserve would probably be published a report on its work on a CBDC shortly. She added that the Fed understood that consensus was necessary to continue.
Nonetheless, the finance minister said that the question of whether the Fed should develop a digital central bank currency was not “seriously” discussed in the White House, and explained:
This is a decision that is important and must require consensus. There are some advantages, but also considerable costs ... it can work to disinterest the banking system. And you know we have to work through the advantages and disadvantages. I have no view yet.
Several governors of the Federal Reserve Dollars by the Fed, including the governors Michelle Bowman, Randal Quarles and Christopher Waller. "I remain skeptical that a CBDC of the Federal Reserve would solve any major problem with which the US payment system is faced with," said Waller recently.
In September, the chairman of the Federal Reserve, Jerome Powell, shared a of the digital dollar study. He insisted that the FED does not remain behind other countries in the digital central bank currency (CBDC).
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