FED Is Looking “Very Carefully” At The Digital Dollar, Powell Explains

The FED is looking very carefully at the digital dollar as Chair Jerome Powell defused to say anything more about the progression towards the digital dollar so let’s read more in our latest crypto news.

The Fed chair Jerome Powel reiterated that the central bank is examining the digital dollar but said that the FED is looking very carefully at it. Powell made the comments this morning during the Federal Reserve’s report to the Senate Banking Committee:

 “We are looking carefully—very carefully—at the question of whether we should issue a digital dollar. And it’s something that central banks around the world are looking at.There are significant both technical and policy questions to do with how we would go about doing that. I would say that we’re committed to solving the technology problems, and to consulting very broadly with the public, and very transparently with all interested constituencies as to whether we should do this.”

The question remains whether the FED will implement a digital dollar as this question has been up in the air for some time. The digital dollar will be a type of CBDC that’s issued and controlled by the state and will not necessarily involve the blockchain-based payments system that some CBDCs do. Powell only said that they are looking carefully at this option as there’s a lot of work to be done before it is actually considered a possibility.

Chair Powell presents the Monetary Policy Report to the Senate Banking, Housing, and Urban Affairs Committee via livestream: https://t.co/uX8mLT2CkY Watch Live: https://t.co/niiUBq0niZ

— Federal Reserve (@federalreserve) February 23, 2021

Powell pointed out that many central banks across the world are looking into similar ideas. China has already worked on the digital yuan and countries like Japan, France, and the UK are researching their own versions of a digital currency. Powell says that they are working upon the regulatory answers for some of these non-US digital currencies. He remarked that the economy has a long way to reach recovery and that he wants to keep the interest rates low for some time. The Fed already lowered interest rates to zero back in 2020 as a response to COVID-19 so there’s no sign of chance that suggests the Fed thinks things need a boost.

As recently reported, Federal Reserve’s Jerome Powell, said that “stablecoins are at a “high-level focus” for the central bank. Powell said that the FED is mainly concerned about the financial risks that stablecoins pose and Central Bank Digital currencies are also on the FED radar.