Federal Reserve Chairman Jerome Powell said the Fed was currently stepping up efforts to explore the costs and benefits of the central bank’s digital currency (CBDC). According to Powell, the Fed will publish the results soon.
Jerome Powell: the central bank must maintain a stable monetary system
“I think it’s important that we get to a place where we can make an informed decision and do it fast. I don’t think we’re behind, I think it’s more important to do it right than quickly. We are working proactively to evaluate whether to issue the CBDC, and if so, in what form, ”said Jerome Powell.
The final decision is not yet. However, crypto enthusiasts believe that the Fed is likely to decide to introduce its own digital currency.
As the dollar is globally important, it is essential that the Fed continues to engage fully in CBDC research. In the summer, Fed officials began to scrutinize digital payments. The Federal Reserve will support and focus on monetary and financial stability, security and efficiency of the national payment system, even if it introduces a digital currency.
“We think it’s really important for the central bank to maintain a stable monetary and payment system for the benefit of the public. That is one of our jobs. ”
Powell himself is not a fan of cryptocurrencies. He does not believe that crypto assets will become the main means of payment in the USA, but stablecoins could have such a chance. But even if that happens, proper regulation of stablecoins is needed.
“As far as public finances are concerned, we need to ensure that appropriate regulatory protection is in place, and in some cases it really doesn’t exist today,” said Powell.
Difference of opinion on the CBDC
Fed Governor Lael Brainard believes the United States can be a leader in this area. But Fed Vice President Randal Quarles and Fed Governor Christopher J. Waller are fundamentally opposed to the CBDC concept.
“I remain skeptical that the Federal Reserve’s CBDC will solve any major problem facing the American payment system. There are also potential costs and risks associated with CBDC. I believe that government intervention in the economy should come only to address major market failures,” Waller said earlier.
Currently, 14 countries in addition to China are testing the CBDC, including South Korea and Sweden. Meanwhile, only five countries have fully implemented CBDC. These are the Bahamas, Antigua and Barbuda, Saint Lucia and two Caribbean countries.