US Federal Reserve Chairman Jerome Powell said the regulator will not issue a digital dollar until all associated risks have been eliminated.
Powell announced this during a speech at the International Monetary Fund conference on cross-border payments. According to him, the United States is not seeking to be the first to issue its own digital currency. Issuing a government stablecoin is a serious task requiring extensive research. It is necessary to take into account not only the positive aspects of the digital dollar, but also its potential risks, given that the US dollar is the world’s reserve currency.
“We have not yet made a final decision on the digital dollar release. I do not think that in the current situation this task should be in the first place for the country. There is no need to rush to create a state cryptocurrency. It is better to do it properly and efficiently, rather than hastily, just to be the first, ”said Powell.
He emphasized that, unlike many countries, there is a strong demand for cash in the United States. In addition, the country has a highly developed financial and banking sector – most of the population has access to banking services, and many use electronic payment systems.
The US central bank will not issue its own digital currency until all associated risks have been removed. This requires providing a high level of protection against cyber attacks and fraud, as well as eliminating the threat to financial stability and the country’s monetary policy. Moreover, you need to think about how to prevent illegal activities with the digital dollar, while maintaining the confidentiality of user data and ensuring the security of funds.
Recall that, according to Powell, private firms should not participate in the development of state-owned cryptocurrencies – only central banks should do this. However, the American Bankers Association (ABA) did not support the issuance of the digital dollar, saying that otherwise the US Federal Reserve would become a “monopoly” supplier of currency, bank accounts and payment services.
