Federal Reserve Chairman Jerome Powell has released an update on the progress of a digital dollar. He acknowledged that it was a “very high priority project” for the Fed and agreed with Treasury Secretary Janet Yellen on the benefits of spending a digital dollar.
The Fed is carefully examining a digital dollar
Fed chairman Jerome Powell testified before the Senate Banking Committee on Capitol Hill Tuesday, the first of two days of Congressional testimony. He speaks to the House Financial Services Committee on Wednesday.
Senator Bill Hagerty asked for a digital dollar, referring to US Treasury Secretary Janet Yellen’s remarks on the matter on Monday. She said, “I think so [the digital dollar] could result in faster, safer and cheaper payments, which I think are important goals. “
Powell first confirmed: “We are examining the question of whether we should spend a digital dollar very carefully.” He noted that other central banks around the world are also examining digital currency issuance because “technology is now making it possible and allowing private sector players to develop their own quasi-money digital instruments.”
The Fed chairman stated: “There are both technical and political issues that have to do with how we would do this.
I would say that we are committed to solving the technology problems and advising the public in a very transparent manner with all interested constituencies in a very transparent manner whether we should do this.
He stressed: “We are the world’s reserve currency and we have a responsibility to get this right. We don’t have to be the first. We have to do it right. “
Powell emphasized, “This is something that we are putting time and effort into throughout the Federal Reserve System,” Powell repeated, “We do research here on the board.” In addition, he noted that the Boston Federal Reserve Bank worked with MIT to explore the area.
The chairman of the Federal Reserve then approved the benefits Treasury Secretary Yellen had outlined on Monday. He added that the digital dollar “could also help with financial inclusion”.
Even so, Powell warned, “At the same time, you want to avoid creating things that could be destabilizing or pull money out of the banking system. We want to be careful what the impact is.” The Fed chairman concluded:
[It’s a] Very high priority project for us.
Do you think the Fed should spend a digital dollar? Let us know in the comments below.
Photo credit: Shutterstock, Pixabay, Wiki Commons
Disclaimer of liability: This article is for informational purposes only. It is not a direct offer or an invitation to submit an offer to buy or sell, or a recommendation or approval of products, services or companies. Bitcoin.com does not provide investment, tax, legal or accounting advice. Neither the company nor the author are directly or indirectly responsible for any damage or loss caused or allegedly caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.
