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The US Federal Reserve is considering developing a central bank digital currency (CBDC), including possible problems and risks that they may pose.
This was told by the Chairman of the Board of GovernorsFederal Reserve Jerome Powell, it was a response to a request from US representatives French Hill and Bill Foster to launch a national digital currency.
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New: Powell told Congress today that the Federal Reserve is exploring whether it makes sense to issue its own digital currency that could be used by households and businesses pic.twitter.com/lH3pnSLkiV
- Zachary Warmbrodt (@Zachary) November 20, 2019
Powell added that the agency is conducting experiments to gain practical experience and better understand the capabilities and limitations of CBDC.
According to him, before the release of CBDC Federalthe reserve should solve a number of legal issues, including monetary and payment policy, assess financial stability, supervision, operational issues and their vulnerability to cyber attacks.
“If they are designed with financialtransparency and provide protection against illegal activities, probably, we may be required to keep records of all data on payments using digital currency ... there will also be issues with data privacy and information security ”- added Powell.
In addition, a number of design considerations should be considered for the development of a CBDC, including managing an outstanding stock of such currency and anonymizing the ownership and transfer of a CBDC.
“The main problem is that we are notwere taken aback by the rapid development of events in other countries, which could put our economy at a competitive disadvantage and jeopardize the primacy of the US dollar. ”- remarked one and three members of the House of Representatives.
</p>@RepBillFoster “encouraged” by Powell’s letter onCBDC: “My main concern is that we are not caught flat-footed by fast moving developments in other countries that may put our economy at a competitive disadvantage and threaten the primacy of the U.S. dollar. ”
- Zachary Warmbrodt (@Zachary) November 20, 2019
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