Federal Reserve Chairman Jerome Powell has shared the progress of the Fed’s work on a central bank digital currency (CBDC), the digital dollar. “We are working proactively to evaluate whether to issue a CBDC and, if so, in what form,” he said, adding that he does not believe the U.S. has fallen behind other countries in this area.” Fed Chair Jerome Powell revealed on CNBC Wednesday.
The central bank must maintain a stable currency and payments system for the public’s benefit.
Powell was asked to update the Fed’s work on central bank digital currency (CBDC). “We think it’s really important that the central bank maintains a stable currency and payments system for the public’s benefit. That’s one of our jobs,” Powell began. “We also live in a time of transformational innovation around digital payments, and we need to make sure that the Fed is able to continue to deliver to the public a stable and trustworthy currency and payment system.” Central banks across countries are actively working on digital currencies in some capacity.
“There’s extensive private innovation.”
The chairman of the Federal Reserve further noted, “There’s extensive private innovation — a lot of which is taking place outside the regulatory perimeter. Innovation is fantastic. Our economy runs on innovation. But, where the public money is concerned, we need to make sure that the appropriate regulatory protections are in place, and today they really are not in some cases.” The chairman of the Federal Reserve added:
So, with that in mind, and with the creation of myriad private currencies and currency-like products, we are working proactively to evaluate whether to issue a CBDC and, if so, in what form.”