February 1, 2023

US Treasury and Fed see no need for digital dollar

US Treasury Secretary Stephen Mnuchin and Federal Reserve Chairman (FRS) Jerome Powell did not interested in issuing a digital dollar in the near future.

“Chairman Powell and I have discussed this in detail. We agreed that in the next five years we do not see the need for the Fed to issue digital currency, ” - said Mnuchin at a hearing in the Committee on Financial Services of the House of Representatives.

His comments came in response to a question about Libra and the digital renminbi.

Formerly IMF chief economist Kenneth Rogoffexpressed the view that the digital yuan would threaten the dominance of the US dollar in the global financial system. This was pointed out in the US Congress, urging the Fed to release CBDC.

The head of the Fed in September said that consumers do not show demand for digital currency.

Recall the day before, the head of the ECB, Christine Lagarde, confirmed the development of the digital currency by the bank, but spoke out against its hasty launch.