US Federal Reserve Exploring Digital Dollar and Its Effect on Monetary System

The United States Federal Reserve System is exploring the development of a central bank digital currency (CBDC) and what issues and risks it could potentially pose.

Federal Reserve Board Chairman Jerome Powell provided a response to U.S.

Representatives French Hill and Bill Fosters’ request on whether the Federal Reserve plans to launch a national digital currency, financial services reporter Zachary Warmbrodt tweeted on Nov. 20.

In the letter, Powell set forth the Federal Reserve’s views on the creation of a CBDC, emphasizing that, although the agency is not currently developing a CBDC, it has assessed and continues to evaluate the costs and benefits of such an initiative.

Powell revealed that the agency is conducting its own small-scale, research-focused experiments to gain hands-on experience and better understand the opportunities and limitations of CBDCs. Read More...