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Federal Chairman Jerome Powell confirms that the US is toying with the idea of its own CBDC

 
Federal Chairman Jerome Powell confirms that the US is toying with the idea of its own CBDC
Breaking News / Crypto Market

Quick take

1 minute read

  • It seems that with all the talk of central-bank digital currencies, the federal reserve in the United States is finally looking into the potential of the asset. 
  • That being said, it is used to create a final decision with the teacher of such an asset and how a project would go ahead in the future.

It seems that with all the talk of central-bank digital currencies, the federal reserve in the United States is finally looking into the potential of the asset. That being said, it is yet to create a final decision with the nature of such an asset and how a project would go ahead in the future. 

At least that comes from the chairman of the federal reserve body, Jerome Powell who recently made his mindset known during a panel call hosted by the IMF recently to highlight its annual general meeting.

Excitingly, Jerome confirmed that the United States is currently looking at a way to outline a strategic approach to the CBDC “Issue“ he goes on to say that it will be very important that they get it right the first time with no hiccups to surprise them along the way. Furthermore, he went on to discuss that the federal reserve it’s looking at all the risk factors as well as the benefits that are associated with developing such a project and asset. With this in mind, the federal reserve has yet to make a final decision on where to go in this area.

Central banks all over the world are getting interested in this asset class and the potential it could have for their country. 

China is one of the biggest countries in the world that is looking into a CBDC and it looks like it will be creating one, or launching one, in the near future. The Bahamas is another country that is looking into the potential of creating their own central digital currency. 

So it seems that the United States isn’t the first government body to contemplate the issuance of a CBDC. Interestingly, the whole idea of a central bank of digital currency has been around for a few years now, it is only in 2020 that it has been gaining some momentum. 

Sweden has been looking into the asset since 2017 and whether they will release one or not remains to be seen.

According to the chairman though, one of the key reasons that central banks are interested in this asset class, is due to the chance of streamlining payments. This wouldn’t mean that a central-bank digital currency would replace Fiat currency but it could compliment it in a way never seen before and make payments easier in the long run.



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