Goldman Sachs: Federal Reserve “hungry for digital currency”

Published:

May 25, 2021 03:14 GMT

The process will be slow because the corporation will try to avoid damaging the existing financial system, says a senior manager at one of the world’s largest investment and banking securities groups.

As new cryptocurrencies continue to appear in different parts of the world, Goldman Sachs chief economist Jan Hatzius believes that the US Federal Reserve will take longer than other financial institutions to create a digital currency that rivals the dollar.

“I think the Fed, in part because of the prominent international role of the dollar, will be slower than other central banks in introducing digital currency. There are very few central banks worldwide that are actually covered at this point,” Hatzius stated to Yahoo Finance.

Although it is “still in the research stage,” the US Federal Reserve is “hungry to create a digital currency,” according to the expert. He also indicated that the process will be slow as the corporation will try to avoid damaging the existing financial system.

“I think we will act cautiously, because No intention, By the Federal Reserve or other central banks, Potentially undermining the propulsion system And the current financial system. “

“Some small steps are unlikely to be very harmful,” stressed the chief economist at Goldman Sachs, one of the world’s largest investment and securities groups. [para el sistema financiero]”.” Steps can be big. So I think it is necessary to move slowly and gain more experience before speeding up. ”

Last week, Federal Reserve Chairman Jerome Powell ad The agency has for years studied the benefits and costs of the potential launch of the digital dollar in the United States and that it will pay more attention to this issue in the coming months.

The head of the entity, the potential digital currency, said, “though many structures and technologies can be used” It can be designed for general public use“However, their circulation should not challenge the digital forms of dollar trading in the private sector that exist today, such as deposits from commercial banks,” Powell said.