Reading time: ~2 m
The chairman of the U.S. Federal Reserve said Congress should get directions from the Fed before implementing the central bank’s digital currency.
Jerome Powell (Jerome Powell) spoke before the Committee on Financial Services of the US House of Representatives. Before launching a digital dollar, the Fed needs to carefully study everything, as this will significantly affect the financial system:
“This is potentially a very important financial innovation that will affect all Americans. Our plan is to work on both the political and technological sides of the issue in the coming years. And then present their recommendations to Congress.”
According to the official, the introduction of the digital dollar will provide citizens of the country with the experience of conducting financial transactions using digital currencies. The Fed has a lot of work to do, Powell warned.
One of the key challenges is to understand whether the central bank’s digital currency will improve the already existing secure and efficient domestic payment system, Powell says. Potentially, the digital dollar can maintain the international dominance of the dollar, but fed analysts cannot yet give an accurate forecast.
Recall, the Fed is considering the prospects of introducing a sovereign digital currency from 2017 and, according to Congressman Jim Himes (Jim Himes), the longer the US government waits before making a decision, the more the United States lags behind other countries. The congressman called for the law to be passed as soon as possible.
Earlier, Deutsche Bank Chief Economist Matt Luzzetti (Matt Luzzetti) said that the aggressive actions of the Fed will accelerate the economic recession in the United States.
#digital #dollar #issued #approval #regulator