The
U.S. Federal Reserve Is Looking Into Launching Its Own Digital Currency
The Chairman of the U.S.
Federal Reserve, the country’s central bank, revealed t’s looking into the
possibility of developing a central bank digital currency (CBDC) while
responding to questions from lawmakers Rep. French Hill (R-Ark.) and Rep.
Bill Foster (D-Ill.).
According to the Chairman,
Jeremy Powell, the Federal Reserve has been carefully analyzing “the costs
and benefits of pursuing such an initiative in the U.S.” He added the central
bank isn’t actively developing a CBDC, as it may even not bring the U.S. the
advantages it may bring to nations that are developing one.
Powell revealed he believes a
CBDC would raise important questions when it comes to monetary policy and
financial stability. His words come at a time in which China is getting ready
to launch its own digital currency, and a
consortium of over 20 large firms – including Facebook, Uber, Verizon, and
Coinbase – prepares a fiat-backed cryptocurrency, Libra.
