US Federal Reserve is considering creating a digital version of the dollar

The U.S. Federal Reserve addresses a wide range of issues related to rationing and protectiondigital payments and currencies, including the cost and potential benefits of issuing their own digital currency, said Lael Brainard, member of the Board of Governors of the US Federal Reserve (FRS).

There are high risks of CBDC

Central banks around the world discuss controlover digital finance technologies and blockchain networks used by assets such as bitcoin. These solutions will potentially provide near-instant payments at potentially low cost.

According to Brainard, the Fed is developing its own round-the-clock payment and settlement service in real time, and is currently considering 200 letters with commentary on the project.

“With the conversion of payments, digitalization can provide more value and convenience at a lower cost.”“Said Brainard during a speech at Stanford Graduate School of Business.

However, there are risks arising fromlack of regulatory field. The creation of private cryptocurrency payment systems similar to Libra on Facebook, according to the head of the Fed, can cause problems such as "illegal financing, confidentiality, financial stability and instability of monetary policy."

Also, according to Brainard:

“The Fed conducts research and experiments,related to distributed ledger technologies and their potential use of digital currencies, including the potential for CBDC (Central Bank Digital Currency). ”

In the US, the following questions need to be addressed: whether the digital currency will make the payment system more secure or simple, and whether it can pose risks to financial stability, including the possibility of bank failure.

Recall that yesterday bitcoin recorded another maximum of 2020, which gave grounds for traders to say about the “official” beginning of a new bullish trend.

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