The Federal Reserve Board is investigating whether to implement its own digital currency and will soon publish a treatise on the issue, Jerome Powell said Wednesday.
He added that the Fed has not been pressured to do anything quickly, as no decision has yet been made on this issue and other countries are working on their own projects.
“I think it’s important to make informed decisions about this and get to a place where you can make it quickly,” Powell said in a press conference after the meeting. “I don’t think we’re late. I think doing this right is more important than doing it fast.”
Powell added that the Fed “is actively assessing whether to issue a CBDC and, if so, how it will be issued.”
The digital dollar has been in place for over a year now, and in May we announced that we would begin a more detailed investigation into this issue and publish the next treatise.
Boston Fed took note of this project and collaborated with MIT on an initiative on whether central banks should establish their own digital coins aimed at making payment systems more effective. Federal Reserve Board Governor Lael Brainard has strongly supported the effort, but several other officials, including Vice-Chairman Randal Quarles, have questioned it.
Proponents such as Brainard say that the benefits of central bank digital currencies include getting people to pay quickly in the event of a crisis and servicing people who don’t have a bank account. increase.
“I think it’s really important for the central bank to maintain a stable currency and payment system for the benefit of the people. That’s one of our jobs,” he said. He referred to “transformative innovation” in the field of digital payments and said the Fed continues to address this issue, including its own FedNow system, which is expected to come online in 2023.
“Is there a clear and concrete benefit that outweighs the costs and risks of the CBDC test,” he said.
However, larger drum beats have been built as central banks, especially China, have pursued their own plans and have begun the first phase of implementation.
There are even concerns that if the Federal Reserve does not act more aggressively, it could challenge the dollar’s position as the world’s reserve currency.
Focusing on the position of the dollar in the world, Powell said the Fed is “in a good place” to decide whether to introduce its own digital currency. He expressed some concern about the regulatory situation and said that if the Fed decides to continue, it will likely require parliamentary permission.
“If people’s money is involved, we need to make sure that proper regulatory protection is in place, but it may not be the case today,” Powell said.
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The Federal Reserve Board is assessing whether and how to launch digital currencies, Powell says.
Source link The Federal Reserve Board is assessing whether and how to launch digital currencies, Powell says.