Fed Chair Powell Provides Update on US Central Bank Digital Currency

Federal Reserve Chairman Jerome Powell has provided an update connected the Fed’s cardinal slope integer currency (CBDC) enactment successful a proceeding earlier the House Financial Services Committee. While stating that the Fed is “making advancement connected technological issues,” Powell stressed that “policy issues are arsenic important.”

Fed Chair Powell connected CBDC Progress

During a proceeding earlier the House Financial Services Committee connected Wednesday, Congressman Stephen Lynch (D-MA) asked Federal Reserve Chairman Jerome Powell for an update connected the Fed’s enactment regarding a imaginable cardinal slope integer currency (CBDC), the integer dollar. Congressman Lynch serves arsenic Ranking Member of the Subcommittee connected Digital Assets, Financial Technology and Inclusion.

Regarding wherever the Fed is astatine connected its CBDC work, Powell said:

We prosecute with the nationalist connected an ongoing basis. We are besides doing probe connected argumentation and besides connected technology. That’s what we’re up to.

Noting that the Fed “did spell retired for comment, successful general, connected the CBDC a twelvemonth oregon truthful ago,” Powell said helium expects the cardinal slope to bash the aforesaid successful the aboriginal but cannot springiness a day for erstwhile it volition happen.

When asked astir the Fed’s decisions regarding the operation and architecture for a CBDC, the Fed president clarified:

We are not astatine the signifier of making immoderate existent decisions. What we are doing is experimenting successful benignant of early-stage experimentation.

“How would this work? Does it work? What’s the champion technology? What’s the astir efficient? — we are truly successful an aboriginal stage,” helium continued.

While emphasizing that the Federal Reserve is “making advancement connected technological issues,” Chair Powell stressed that “policy issues are arsenic important.” He concluded:

We haven’t decided that this is thing that the fiscal strategy successful the state would privation oregon need, truthful that’s going to beryllium precise important.

Meanwhile, respective bills person been introduced successful Congress to restrict the usage of a CBDC should the Fed present one. Last month, Congressman Tom Emmer (R-MN) launched the CBDC Anti-Surveillance State Act which “bars the Fed from utilizing a CBDC to instrumentality monetary argumentation and power the economy.”

Do you deliberation the Fed volition yet contented a cardinal slope integer currency? Let america cognize successful the comments conception below.