FED Chairman Powell Made a Statement About Digital Currency

FED Chairman Powell made a statement about digital currency. The president said they would not rush into digital currency. US Federal Reserve (FED) President Jerome Powell has made a statement regarding the possibility of the US to issue a central bank digital currency (CBDC). Speaking at an online event organized by Princeton University, Powell said that the US dollar is already the reserve currency and they are not in a hurry to launch CBDCs. According to some economists, the launch of CBDC will bring many advantages, but Powell stated that they can be patient because of the reserve status of the US dollar. Powell noted: “We are determined to make CBDC right rather than fast. But it will take a while, it could take years instead of months.” In the US, there has been a lot of worrying talk about how China has reached the digital yuan. China, which maintains pilot programs on digital currency called DCEP and tests daily use cases, is far ahead of many countries in this regard. Regarding the issue, FED Chairman Powell used the following statements: “This is an area that we must take very, very seriously, as it is possible to launch CBDC and the private sector can already start CBDC.” Pointing out that they should take into account unanswered questions and potential costs as well as the benefits associated with CBDCs, President Powell explained that they are planning to launch an outreach program to understand whether stakeholders really need the CBDC. In this way, the FED aims to test how the digital dollar will affect financial spheres. According to President Jerome Powell, the FED invests heavily in technology and keeps a close watch on political problems related to CBDCs.         Source: Investing.com