Fed Chairman on the US CBDC

Fri 24 Sep 2021 ▪ 12h39 ▪ 3 min de lecture - par Mary Anderson

The Chairman of the Federal Reserve System (FRS) Jerome Powell reported on the progress of the central bank digital currency (CBDC), the digital dollar. “We are working proactively to evaluate whether to issue a CBDC and, if so, in what form,” he said.

US CBDC progress

The US Federal Reserve System has not yet decided whether to launch a digital dollar, Fed Chairman Jerome Powell said on Wednesday, 22nd September, on CNBC.

When asked about the Fed’s work on the CBDC, he replied: We think it’s really important that the central bank maintains a stable currency and payments system for the public’s benefit. That’s one of our jobs. We also live in a time of transformational innovation around digital payments and we need to make sure that the Fed is able to continue to deliver to the public a stable and trustworthy currency and payment system.”

He continued: “There’s extensive private innovation — a lot of which is taking place outside the regulatory perimeter. Innovation is fantastic. Our economy runs on innovation. But, where the public money is concerned, we need to make sure that the appropriate regulatory protections are in place, and today they really are not in some cases.” 

Bitcoin.com reports: “So, with that in mind, and with the creation of myriad private currencies and currency-like products, we are working proactively to evaluate whether to issue a CBDC and, if so, in what form.”

Interim results

Powell noted: “We do intend to publish a discussion paper soon that will be the basis for the period of public engagement, engagement with many different groups, including elected public officials around these issues. We think it’s our obligation to do the work on technology and public policies to form a basis for making an informed decision.”

He added: “The ultimate test we’ll apply when assessing a central bank digital currency and other digital innovation is whether clear tangible benefits outweigh any costs and risks.”

The Fed Chairman also commented on the current work on the CBDC: “We really have two broad work streams, one of which is really technology, both at the Board and in the Federal Reserve Bank of Boston’s work with M.I.T. The other is to identify, scope out, deal with, analyse the various public policy issues.”

During the interview, Powell was asked if he was concerned that the US is falling behind in the field of CBDCs. He replied, “I don’t think we are behind. I think it’s important to do this right than to do it fast.”

Currently, 81 countries are exploring the possibility of issuing their own digital currencies. Some countries have already done this. Among them is China, which is actively testing its digital yuan.

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Mary Anderson

I am sure that crypto assets are a new type of economy. We are at the origins of the crypto revolution. Right now, it is worth studying what cryptocurrencies and the blockchain are in order to make the most of this knowledge and these skills in the future.

DISCLAIMER

Les propos et opinions exprimés dans cet article n'engagent que leur auteur, et ne doivent pas être considérés comme des conseils en investissement. Effectuez vos propres recherches avant toute décision d'investissement.

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