Chairman Jerome Powell says the Fed is undecided about the digital dollar
The US Federal Reserve is still examining the prospect of introducing a digital currency into the country, but said it has yet to make a decision on the matter.
Speaking at a news conference on Wednesday, Powell said the Federal Reserve is studying the value of creating a digital dollar and plans to release a report on the matter.
“We’re working hard to get a CBDC out, and if so, in what form,” Powell said as he answered questions at the press conference, adding:
“We believe we have a duty to work on both public policy and technology in order to lay the foundations for informed decision making. The ultimate test we will apply in evaluating central bank digital currencies and other digital innovations is that there are clear and tangible benefits that outweigh any costs and risks. “
Although several central banks are launching their own CBDCs, Powell said the Fed is in no hurry to join the trend.
According to the Fed chairman, the focus is not on speed, but on getting things right, while the US is not behind the curve when it comes to CBDC innovation.
CBDC is at the forefront of the anti-crypto narrative advocated by global banking regulators and government policymakers.
As previously reported by Cointelegraph, HSBC recently supported CBDC against cryptocurrencies and stablecoins.
Related: Fed governor says CBDC is still “a problem-seeking solution”
In fact, Washington crypto critics like Senator Elizabeth Warren have labeled the CBDC as “legitimate digital public money” compared to the cryptocurrency the Senator is known to condemn.
In early September, Wall Street Journal columnist James Mackintosh argued that CBDCs could trigger “deeply negative interest rates.”
Fed Governor Chris Waller has previously spoken out against the value proposition of the CBDCs, describing them as “problem-seeking solutions”.
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Chairman Jerome Powell says the Fed is undecided about the digital dollar
The US Federal Reserve is still examining the prospect of introducing a digital currency into the country, but said it has yet to make a decision on the matter.
Speaking at a news conference on Wednesday, Powell said the Federal Reserve is studying the value of creating a digital dollar and plans to release a report on the matter.
“We’re working hard to get a CBDC out, and if so, in what form,” Powell said as he answered questions at the press conference, adding:
“We believe we have a duty to work on both public policy and technology in order to lay the foundations for informed decision making. The ultimate test we will apply in evaluating central bank digital currencies and other digital innovations is that there are clear and tangible benefits that outweigh any costs and risks. “
Although several central banks are launching their own CBDCs, Powell said the Fed is in no hurry to join the trend.
According to the Fed chairman, the focus is not on speed, but on getting things right, while the US is not behind the curve when it comes to CBDC innovation.
CBDC is at the forefront of the anti-crypto narrative advocated by global banking regulators and government policymakers.
As previously reported by Cointelegraph, HSBC recently supported CBDC against cryptocurrencies and stablecoins.
Related: Fed governor says CBDC is still “a problem-seeking solution”
In fact, Washington crypto critics like Senator Elizabeth Warren have labeled the CBDC as “legitimate digital public money” compared to the cryptocurrency the Senator is known to condemn.
In early September, Wall Street Journal columnist James Mackintosh argued that CBDCs could trigger “deeply negative interest rates.”
Fed Governor Chris Waller has previously spoken out against the value proposition of the CBDCs, describing them as “problem-seeking solutions”.
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