Jay Powell on Thursday urged the Federal Reserve to consider spending with a major US central bank.
The Fed chairman said he would like to comment publicly on the proposal, amid pressure by some U.S. lawmakers and interest in so-called central bank digital currency (CBDCs) worldwide.
In the missing words of the video was released on the Fed’s website, Mr Powell stressed that there are advantages and disadvantages that can be associated with digital currency, as well as the growth of so-called private, digital currency investments in dollars, which he said could disrupt the financial system.
“The efficient operation of our economy requires people to have confidence and confidence not only in the dollar, but also in payroll, banks, and other financial institutions that allow money to flow on a daily basis,” he said.
“Our ultimate goal is to ensure a secure and efficient payment system that benefits American families and businesses as we innovate.”
The Fed has been considering a central bank loan that has been given to the bank for some time, but has appeared to be more questionable than financial regulators in other countries. China is already experimenting with a digital name.
Powell said every CBDC organization should “support not instead of money, and the recent forms of dollars, such as deposits in retail banks”.
When the Fed released the paper this summer “to encourage greater dialogue”, he said, asking for help with payments, including financial and confidentiality, among other topics.
He also said that the Fed would want to play a “leading role” in the transformation of CBDC foreign countries.
Powell pointed out that the Fed is paying close attention to how business organizations will support, including the establishment of chiwalins and tree prices about cryptocurrensets like bitcoin.
“Cryptocurrencies did not serve as a viable source of funding, because, among other things, their exchanges are important,” he said. “Stablecoins wants to use new technologies in a way that can help improve payments, speed up money management, and reduce spending – but it can also pose risks to users and the financial system.”
As solidcoins intensified, he encouraged regulatory oversight, which “also includes interest in public sector investors who currently do not comply with regulations applicable to banks, financial institutions, and other financial services providers”.
Powell said the upcoming talks would signal “the beginning of what will be thought and discussion”, and promised to hear from “various voices” before making a decision.
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