Is the Federal Reserve finally getting serious about the US digital dollar?

Published:

21 May 2021 12:47 GMT

Jerome Powell, the company’s chairman, promises not to think about putting another cryptocurrency like Bitcoin into circulation.

The Federal Reserve has been studying the benefits and costs of introducing a digital dollar in the United States for many years, and says it will focus more on this issue in the coming months. Video message This was announced by the company’s president Jerome Powell this Thursday.

With the intention of “Stimulates a broader conversation”, The company will release a discussion paper this summer, which summarizes the current thinking on digital payments. Special focus on benefits and associated risks“The central bank will emphasize the digital currencies and the US environment,” the official announced.

Powell addresses and specifically mentions the ledger technology behind cryptocurrencies such as Bitcoin ‘Stable Coins’ They are linked to the dollar or other national currencies, but all of these types represent risks to users and the financial system. Therefore, The central bank thinks about the digital form of the Fiat dollar It will expel itself and people will know.

“Although many structures and technologies can be used,” said the company’s president, potentially digital currency “Can be designed for public useHowever, the private sector in its circulation should not challenge the digital forms of dollar circulation, such as commercial bank deposits.

About a year ago, a team from the Federal Reserve in Boston began working with researchers at the Massachusetts Institute of Technology (MIT).

In addition, the move is being promoted by the Progressive Democrats, as well as opening a central bank account for every citizen (whose functions the central bank does) as a way to help poor Americans who have no access to the banking system Remember Marketwatch.