Federal Reserve Chairman Jerome Powell said the U.S. central bank is considering whether to issue a “very broad-based” digital dollar. He noted that the Fed is working with Congress and the executive branch on whether to issue a central bank digital currency.
Fed Chair Powell on progress of digital dollar
Federal Reserve Chairman Jerome Powell provided an update on the central bank’s work on a digital dollar during a panel discussion on digital finance hosted by the Bank of France on Tuesday.
“Cash isn’t going away in America. We still use cash a lot,” he began. However, the central banker noted: “It is falling, not in absolute terms, but in comparison to non-cash payments.”
Powell explained that the Federal Reserve is closely watching the “potential costs and benefits” of issuing a central bank digital currency (CBDC) in the United States. He detailed:
We are looking at it very carefully. We’re assessing policy issues and technical issues, and it’s very broad.
However, Powell clarified: “We haven’t made a decision to go ahead and we don’t think we’re going to make that decision for some time.”
“We see ourselves as working with Congress … but also with the executive branch, who provide expertise on many of the issues we have to deal with here,” the Fed chairman explained.
“Ultimately, we need approval from the executive branch and Congress to move forward with a central bank digital currency,” he added, elaborating:
We believe this is a process that will take at least a few years, and we are working on it and building public confidence in our analysis and final conclusions.
Noting that the Fed has yet to make a decision on whether to issue a digital dollar, Powell concluded: “This is where we are, and we still have a lot of work to do.”
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