FED President Classifies Digital Dollar as High-Priority Project
Jerome Powell, the Federal Reserve (FED) president, treats the digital dollar as a “high priority project.” Powell confirmed in a hearing before the Senate Banking Committee that there is a high chance for the United States to issue its central bank digital currency (CBDC). Several nations worldwide are also considering the same fact.
Powell believes that approval from the US Congress will be a requirement to develop a digital dollar. Although “it is unclear until we see in which direction we are going.” But Powell was convinced that 2021 would be a crucial year to move forward with this project.
The FED president also added that there are political and technical elements to solve before launching this nature project. He said: “A public dialogue is going to happen.” This dialogue intends to know the position that all the groups interested in the project could have.
Powell acknowledged that a digital dollar could contribute to greater financial inclusion. Still, his concern seems to revolve around the fact that today’s the United States has a functioning banking and monetary system and a strong capital market. He stated that the Fed must be careful by creating a digital dollar.
In October of 2020, the United States seemed quiet about issuing its digital version of the dollar. Powell pointed out that it was more relevant to focus on studying the risks better than to be the first to publish a CBDC. However, at that time, some said that “something” would end up replacing the US currency as a global store of value.
The FED president also added that there are political and technical elements to solve before launching this nature project. He said: “A public dialogue is going to happen.” This dialogue intends to know the position that all the groups interested in the project could have.
Powell acknowledged that a digital dollar could contribute to greater financial inclusion. Still, his concern seems to revolve around the fact that today’s the United States has a functioning banking and monetary system and a strong capital market. He stated that the Fed must be careful by creating a digital dollar.
In October of 2020, the United States seemed quiet about issuing its digital version of the dollar. Powell pointed out that it was more relevant to focus on studying the risks better than to be the first to publish a CBDC. However, at that time, some said that “something” would end up replacing the US currency as a global store of value.
Comments
Oh ya 5 year ago
So wrong in so many ways. 1st the government will be able to force you to do anything it wants somple by cutting you off from your bank account. If big tech can cut you off from Facebook for example then you know government can cut you off. For example the government wants you to take a vaccination and you do not want to.... No bank access for you. Another thing the USD has lost 97/98 % of it value against gold since the government gave control of the US money supply to 6 banks that go by the name FEDERAL RESERVE, in 1913. Now what makes you think this government crypto is going to be worth anything more than a almost worthless printed USD? Crypto is just another form of control over you. They control you bank crypto and thus control weather you make your house and car payment, buy food for your family etc. Do you really want to give control of your life up to some power hungry goverment nutbar. People need to really start thinking for themselves again. When someone knocks on your door and says hi i am from the government and am here to help, slam the door shut