Fed Chair Admits Digital Currency Can Improve Payment System

US Federal Reserve Chairman Jerome Powell acknowledged that a central bank's digital currency could improve and expand the US payment system.

Speaking at the IMF panel discussion, he said,that the implementation of CBDC will speed up transactions and reduce their cost, stimulate the modernization of payment infrastructure, and attract consumers who lack services from traditional financial institutions.

Currently, about 80% of central banks are exploring concepts for using digitalcurrencies, but the Fed is in no hurry to release a digitaldollar. According to Jerome Powell, the United States does not seek primacy, but wants to do everything right, carefully assessing the benefits, possible risks, and compromises that will have to be made.

The main difficulties of implementing a CBDChe names cyber attacks, the impact on fiscal policy and financial stability of the country, the balance between privacy and user security, as well as the introduction of mechanisms to combat illegal transactions.

At the same time, the Fed chairman added that the hypothetical digital dollar will not be able to replace cash due to the high demand for it, but it will bring a lot of social benefits.

Last week, the Bank of Russia also said that it would study the prospects for issuing a digital ruble and possible options for its implementation.

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