Fed Chairman Powell Addresses Efforts To Create Digital Dollar Amidst Bitcoin Rally
It’s been revealed that the Federal Reserve Chairman Jerome Powell says the Fed is currently exploring the creation of a digital version of the US dollar while at the same time evaluating the risks and trade-offs of a CBDC.
According to the online publication the Daily Hodl, in a panel hosted by the International Monetary Fund on October 19th, Powell said that the US has an obligation to lead in policy and innovations with regards to cross-border payments.
On the other hand, massive caution is also required.
“We do think it’s more important to get it right than to be the first. And getting it right means that we not only look at the potential benefits of a CBDC but also the potential risks and also recognize the important trade-offs that have to be thought through carefully,” he said.
He continued and explained that “We have a responsibility both to the U.S and to the world that any steps taken for US digital currency be taken safely. We’re absolutely committed to the soundness of the dollar into a safe and efficient U.S dollar payment system.?”
Operational questions that have to be addressed
He also said that besides addressing the benefits, there are also some difficult policy and operational questions that have to be addressed:
“Just to mention a few: I would mention the need to protect a CBDC from cyber attacks, counterfeiting and fraud, the question of how a CBDC would affect monetary policy and financial stability, and also how could a CBDC prevent illicit activity while also preserving user privacy and security.”
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Andreas Townsend Author
I am a technical writer, author and blogger since 2005. An industry watcher that stays on top of the latest features, extremely passionate about finance news and everything related to crypto.