In the last few months, several central banks have shown interest in CBDC. In a letter to congress, US Federal Reserve chairman Jerome Powell said that the US is looking into launching its own digital currency that would be available for retail and institutional markets.
New: Powell told Congress today that the Federal Reserve is exploring whether it makes sense to issue its own digital currency that could be used by households and businesses pic.twitter.com/lH3pnSLkiV
— Zachary Warmbrodt (@Zachary) November 20, 2019
US Federal Reserve is exploring CBDC.
Earlier, the US Federal reserve posted a job opening for a manager level to conduct research in CBDC and blockchain. People started speculating that the US Fed is considering to issue its own CBDC. The letter reads, “while we are not currently developing a central bank-backed digital currency, we have assessed, and we continue to carefully analyze the costs and benefits of pursuing such an initiative in the country.”
China all set to take the technological lead.
People’s Bank of China earlier revealed that they have been working on its digital currency from the last 4 to 5 years. The bank is expected to roll out its digital currency any time soon now. Several economists and industry experts believe that China’s digital Yuan could challenge the US dollar’s global dominance.
China is also looking to take the lead in the blockchain technology. As reported earlier, Chinese President Xi Jinping endorsed blockchain technology as he asked the country to seize the opportunity. Proof of Capital partner also believes that the US needs to do catching up in this field.