Fed chair signals possibility of issuing a digital dollar

The chair of the Federal Reserve (Fed), Jerome Powell, said there is a possibility of issuing a CBDC and reminded that doing it right is more important than racing others.

In an interview on CNBC Powell said that the successes of other countries in developing digital currencies have not changed the Fed’s stance.

We will see a CBDC. But we should not rush because others have forged ahead. — Powell explained.

The more important criterion, in his view, is how the digital dollar will help ordinary citizens and how it will be integrated into the financial system.

The Fed chair expressed doubt that the digital yuan model would apply to the United States. In his words, it \”simply would not work here,\” because the Chinese government has the ability to see every payment in real time.

This is more about what happens in their own financial system, rather than what happens on a global level, — Powell explained.

The Fed chair cited the Bank for International Settlements report (BIS), which states that CBDC should coexist with cash and other forms of money.

In March, Powell stated that Bitcoin may replace gold, but not the US dollar.

Earlier, ForkLog reported that Fed staff and MIT would complete work on creating prototype of a CBDC by July 2021.

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