Federal Reserve Chairman Jerome Powell said the U.S. central bank is still considering whether to issue a “digital dollar” widely. He pointed out that the jury is still out on whether a central bank digital currency (CBDC) will be implemented or not, but the Fed is working with Congress and the executive branch on related research.
Powell shared an update on his work on the “digital dollar” during a digital finance panel meeting on Tuesday. He first said:
Cash isn’t going away in America. We still use cash a lot, and while its usage is declining, not in absolute terms, but in comparison to non-cash payments.
Ball explained that the Fed is closely watching the “potential costs and benefits” of issuing a CBDC in the United States. “We’re looking at it very carefully. We’re evaluating policy issues and technical issues, and it’s very broad,” he noted.
However, Powell stressed that the Fed has not yet decided whether to issue a “digital dollar,” and that the decision is not expected “for some time” and that there are many things to work on. He went on to explain:
We are working with Congress, but also with the executive branch, who provide expertise on many issues in this area.
Ball reiterated that the Fed must obtain approval from the executive branch and Congress to move forward with a CBDC, a process he believes will take at least several years.
Throughout the world, more and more countries are eager to issue CBDC. A senior Russian lawmaker recently said that the country expects to launch a “digital ruble” early next year, and intends to use the “digital ruble” to settle mutual settlements with China in an attempt to Weakening of America’s global financial hegemony.
This article emphasizes that “cash has not disappeared”! Ball: It will take at least a few years to issue a “digital dollar” First appeared on Blocker.