US senator urges Fed to lead study into the digital dollar

The chair of the US Senate Banking Committee, Sherrod Brown, urged the Federal Reserve to study the possibility of issuing a digital dollar. He sent the corresponding letter to the Fed chair, Jerome Powell.

In Brown’s view, the Fed should be the leader in national digital currencies (CBDCs). If the United States misses this opportunity, it could be left behind by history and lose its lead in the financial system, the senator said.

“Some of our international partners are deciding whether to implement a central bank digital currency. The United States must do the same. We cannot be left behind,” the letter states.

The official noted investments by a number of firms in Bitcoin, noting that such a trend signals a shift in the financial landscape. Bitcoin, the first cryptocurrency, and other digital coins, Brown said, are risks to the monetary system and the climate.

“They are very volatile and speculative assets; they can be used for illicit activity. They also consume an incredible amount of energy,” the senator said.

He acknowledged that ignoring the cryptocurrency industry would be foolish. In his view, authorities should accelerate the introduction of regulatory oversight of the sector.

Earlier the Fed faced a technical glitch, which for several hours disrupted the operation of a number of services. In light of this, supporters of Bitcoin pointed to the virtues of the blockchain behind digital gold.

In February, US Treasury Secretary Janet Yellen mentioned the need to consider launching a CBDC.

Federal Reserve_ Letter 03012021 by ForkLog on Scribd

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