Federal Reserve Chairman Jerome Powell (Jerome Powell) provided the latest information on the progress of the digital dollar. He confirmed that this is a “very priority project” for the Fed and agreed with the benefits of the digital dollar issuance by US Treasury Secretary Janet Yellen.

The Fed is carefully studying digital currencies

Fed Chairman Jerome Powell testified at the Senate Banking Committee meeting on Tuesday, the first day of two days of testimony by Congress. He will speak on the House Financial Services Committee on Wednesday.

Senator Bill Hagerty asked him about the digital dollar, referring to the remarks made by US Treasury Secretary Janet Yellen on the matter on Monday.She said, “I think [the digital dollar] It may lead to faster, safer and cheaper payments, which I think is an important goal. “

Powell first confirmed: “We are studying very carefully whether we should issue digital dollars.” He pointed out that other central banks in the world are also studying the reasons for issuing digital currencies, because “the technology now enables us to do this, and also Enable private sector participants to create their own digital quasi-currency type tools.”

The chairman of the Federal Reserve pointed out: “There are major problems in technology and policy, how will we do it,”

What I want to say is that we are committed to solving technical problems and conducting extensive consultations with the public in a very transparent manner with all interested constituencies to decide whether we should do this.

He emphasized: “We are the world’s reserve currency, and we have a responsibility to do this. We don’t have to be the first. We need to handle it correctly.”

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Powell emphasized: “This is something we invest time and energy in the entire Fed system,” he reiterated: “We are conducting research on the board.” He also pointed out that the Federal Reserve Bank of Boston has partnered with MIT to explore this. field.

Then, the Fed Chairman agreed to the benefits outlined by Treasury Secretary Yellen on Monday. He added that the digital dollar “can also help achieve financial inclusion.”

Nonetheless, Powell warned: “At the same time, you must avoid creating things that may destabilize or may withdraw funds from the banking system…we must be careful of what it means.” The Fed Chairman concluded:

[It’s a] A very important project for us.

Do you think the Federal Reserve should issue a digital dollar? Let us know in the comments section below.

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