As the drive for cryptocurrency adoption presses on, many countries are looking to join the wave, by floating their own central bank digital currency (CBDC). While the People’s Bank of China (PBoC) might be the first in the world to achieve this feat, the United States is not too far behind as it has also begun considering doing this as well.
According to a tweet from a financial reporter Zachary Warmbrodt, the Federal Reserve Board Chairman Jerome Powell, has now offered an official response to a request by two Representatives including French and Bill Fosters, which sought to find out whether or not the Federal Reserve was considering floating its own digital currency.
In Powell’s response, he mentions that Federal Reserve is still in the process of evaluating such a decision and whether or not it will be in the best interest of the U.S. financial system, as well as what it will cost. He however said that no decisions have been reached yet and there is no current development process afoot.
Powell also says that there are many things to consider as a U.S. CBDC would need to satisfy certain questions. He wrote:
“… In the U.S. context, issuing a central bank digital currency for general use would raise important legal, monetary policy, payments policy, financial stability, supervision and operational questions that need to be considered carefully. Nonetheless, the Federal Reserve will continue to analyze the potential benefits and costs of central bank digital currencies.”
This development comes after a Federal Reserve official recently described a US CBDC as inevitable.
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