The Fed has not yet made an official decision on whether to issue a digital currency
Federal Reserve Bank of the United States (Fed) Chairman Jerome Powell stressed the role of studying the necessary legal factors before officially issuing a digital currency.
Federal Reserve Bank (Fed) Chairman Jerome Powell. (Source: AFP / VNA)
On July 15, Federal Reserve Bank of America (Fed) chairman Jerome Powell said there had been no official decision on the benefits and costs of issuing a Fed-backed digital currency (CBDC).
In a hearing on CBDCs before the U.S. Senate Banking Committee, Mr. Powell said it was the responsibility of the Fed to study the technology and policies of digital currency issuance in the years to come.
According to Fed executives, this is what the bank needs to do to be ready to give instructions when needed. In order to issue a CBDC, the Fed needs broad support in society in general and in the US Congress in particular.
Mr. Powell also highlighted the role of researching the legal factors required prior to issuing digital currencies.
Mr Powell’s comments come as the Fed plans to seek written comments this summer on the benefits and risks of a CBDC issue. Many large banks are testing or investigating digital currency issuance.
Earlier it was reported that the Fed was working on developing its own digital currency this summer.
While the US Federal Reserve has not released any specific plans for the currency, Chairman Jerome Powell has noted advances in payment technology and said the Fed has “carefully monitored and adjusted” these innovations.
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