The Federal Reserve is torn between opinions of all kinds about the digital dollar

Many economies around the world have begun accelerating their projects to launch their central bank digital currency (CBDC), with China at the forefront. in the United States , digital dollar Doesn’t seem to stir up the powers too much, and Inside the Federal Reserve (feed it) The initiative has supporters and critics.

The highest financial body in the US powerhouse is currently working on a report on the potential benefits of digital currency complementing physical money. the head of the body himself, Jerome Powellconfirmed it Do you intend to implement a correct projectAnd But not necessarily fast. Its rulers have mixed opinions.

in August, Lyle BrainardA member of the Federal Reserve Board of Governors said it was “urgent” for the government to move forward with developing a digital currency. The dollar is very prevalent in international payments. But if there are other major jurisdictions in the world with a digital currency, and the introduction of digital central bank currencies, and the United States not having one, that does not seem to me a sustainable future.Note at the time. Three months later, his colleagues spoke in the opposite direction.

Michel Bowman He recanted a few days ago that the US payment system was safe and efficient, so he didn’t see it necessary to step up to a central bank digital currency. Although his comments seemed somewhat unrelated to the financial innovation in which the entire world is advancing, he admitted that She’s not sure she understands How do cryptocurrencies work?.

Read more:The US will not compete with China in the ‘crypto race’

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However, Bowman wasn’t the only Fed official to speak out against the eventual digital dollar. Randall QuarlesHe also admitted his ignorance of it. I don’t understand why we are allocating a huge amount of resources and technological risks and the huge disruption to the current performance of the financial system that might come from a central bank saying we are going to provide this digital currency.The governor slipped into a conference a few weeks ago.

Another issue that has plagued agency officials is related to competition within the US financial system. Christopher WallerAnother Federal Reserve Governor, He believes that the digital dollar will put the agency against private banks. “Should the central bank be more involved in processing payments to households and businesses in a way that allows them to bypass the banking system?”, asked the administrator during one of the forums.

The truth is that it still The government headed by Joe Biden has not decided any path regarding a new sovereign digital currency, so there is an unusual expectation about the document that the Federal Reserve will present, in terms of the benefits, risks and potential uses CBDC.

Read on:

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Regulations first, then CBDCs

Aileen Morales

"Beer nerd. Food fanatic. Alcohol scholar. Tv practitioner. Writer. Troublemaker. Falls down a lot."

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