The Federal Reserve System (Fed) needs support from the US Congress in creating a digital dollar. Chairman Jerome Powell said.
In remarks before the Senate Banking Committee, the official noted that the laws governing the Fed’s activities could form the basis for issuing CBDC, but launching the process by Congress would be a more suitable option.
“This is such a fundamental question that it would be optimal to conduct broad consultations and congressional authorization,” Powell said.
Earlier reports indicated that staff at the Federal Reserve Bank of Boston and the Massachusetts Institute of Technology will complete work on creating a prototype of the digital dollar by July. The Fed began such experiments in February 2020.
Earlier, Powell noted that for the United States it is important not to be first to issue a CBDC, but to do this with the right approach. In a September session, he announced the upcoming report on the digital dollar.
In August, Fed Governor Chris Waller doubted the wisdom of issuing a CBDC. His colleague Randall Quarles expressed the same view.
Earlier, U.S. lawmakers were concerned about the lag behind China in developing a national digital currency.
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