Speaking at a recent press conference, Fed Chairman Jerome Powell said the Fed was still weighing up the advantages of a central bank digital currency (CBDC) and was in no rush to reach a decision on committing to a rollout of the technology. He said the Federal Reserve intends to publish a paper in due course setting out its thoughts on digital currency and whether the U.S. should adopt a digital dollar.
“We are working proactively to issue a CBDC.”
“We are working proactively to issue a CBDC and, if so, in what form. We think it is our obligation to do the work both on public policy and technology to form a basis for making an informed decision. The ultimate test we will apply when assessing a central bank digital currency and other digital innovations is, ‘Are there clear and tangible benefits that outweigh any cost and risks?'” Jerome Powell said. Despite central banks worldwide pressing ahead with their own plans for a CBDC, Powell insisted the U.S. would not rush to follow, with the Federal Reserve instead taking its time to get the right model in place.
Fed will take sufficient time to consider the full details of any digital currency before committing to a launch.
While the U.S. has been accused of being behind the curve in terms of CBDC innovation compared to major central banks, including China, Powell insisted that the best approach was one that took sufficient time to consider the full details of any digital currency before committing to a launch. The developments come in the week where HSBC said it was working with eight national central banks to develop their CBDC programs while sounding a positive note about the technology and its role in the economies of the future.