The US Federal Reserve has taken steps to create digital currency in the same way announced plans to publish a research paper on this topic. The aim is to get public comment and make the US play a “leading role” in setting international standards, says Fed chairman Jerome Powell in you buy videos.
“In order to initiate more dialogue, the Federal Reserve Board will issue a summer report outlining our views on digital payments, focusing on the pros and cons of CBDC in the US,” Powell said. “As part of this process, we are asking everyone to comment on financial matters, financial inclusion, confidentiality, and information security.”
Advertising takes the idea of a “digital dollar” from a little research into another big thing. The Fed wants to explore how “digital currency in digital banks” or CBDCs can interact with US banks.
At the same time, the Fed is trying to improve access to US digital currency as other countries, especially China, move farther away. Last December, China announced that elected officials could use digital currency given a lottery type measure. Digital currency is seen as a way for China not only to strengthen its currency, but also as a tool soft force all around the world.
To this end, Powell asserted that while the United States has not taken any action on the digital front, “we expect to participate in setting international standards for CBDBs,” he said. This takes time, however, adding that the decision will require “careful consideration” from the panel and the nominees.
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