US Federal Reserve Chairman Jerome Powell Admits Central Bank Digital Currency Could Improve and Expand America’s 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 also attract consumers who lack service from traditional financial institutions..
Currently, about 80% of central banks are exploring the concept of using digital currencies, but the Fed is in no rush to issue a digital dollar. According to Jerome Powell, the United States does not strive for superiority, but wants to do everything right, carefully assessing the benefits, possible risks and the compromises to be made.
The main difficulties CBDC implementation it names cyberattacks, the impact on fiscal policy and financial stability of the country, the balance between user privacy and security, as well as the introduction of mechanisms to combat illegal operations.
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 will bring a lot of social benefits..
Last week, the Bank of Russia also announced that it will study the prospects for issuing a digital ruble. and possible options for its implementation.
text: Ivan Malichenko, photo: Getty Images
Fed Chair Jerome Powell spoke to the IMF about digital currencies