The Fed is in no rush to introduce a digital currency, says Chairman Jerome Powell

Many countries around the world are working towards adopting central bank digital currencies (CBDCs) as cryptocurrencies continue to become part of the financial system. The US Federal Reserve (Fed) doesn’t seem to be in as much of a hurry as Chairman Jerome Powell is share in a current press conference.

Currently, the Fed is researching the value of new financial technology, including the need to issue a new digital currency. In fact, there will be a similar paper soon.

Powell says the Fed doesn’t want to be pressured into doing something in a hurry.

“I think it’s important that we make an informed decision about this in order to build momentum quickly. I don’t think we’re falling behind. It’s important to get it right the first time instead of doing it quickly. “

Nevertheless, the Fed is still actively examining whether and, if so, in what form a CBDC should be issued.

“We have an obligation to consider both public policy and technology in order to provide a basis for informed decision-making. The final test we will use in evaluating CBDCs and other digital innovations is whether they have clear and tangible benefits that outweigh the potential costs and risks? “

The Fed first expressed serious interest in issuing a CBDC last year.

It’s worth noting, however, that Powell doesn’t think the U.S. is lagging behind other countries, although countries like China have started some pilot projects and a digital renminbi is expected to be launched.

Some believe that if the Fed is left behind, the US dollar’s position as a global reserve currency will be challenged.

Powell denied these claims during the press conference, saying that the US dollar was in a “good position” to decide whether to introduce its own digital currency. He also quickly mentioned some of the views of Gary Gensler, the chairman of the United States Securities and Exchange Commission (SEC) on cryptocurrency regulations.