Jerome Powell, the chair of the American Federal Reserve, said that the bank plans to publish its study paper on the discussion of launching its State-backed crypto token. While talking in a public address published on its website, Powell touted how the Fed has always been on the front foot when it comes to adopting new technologies.
In his address, he focused his attention on advancing the digital ledger and then highlighting stable coins and CBDC. Referring to the potential development of the American digital dollar, Powell said that the Fed plans to release its discussion paper later this summer.
He further added that the paper would discuss the Federal Reserve’s perspective of the digital dollar, its risks, and concerns in the context of its use in America. Powell stated that the broader perspective was much needed to decide whether or not the agency must move ahead with its plans for the project.
Powell further said that regardless of the outcome, the American Federal Reserve is determined to set the bar for the government-backed digital tokens. While discussing the CBDC’s, Powell said that the main focus regarding these government-backed digital assets could help improve the traditional payment methods.
Even though the Federal Reserve is a little slow in launching its version of the digital dollar, the head of the government agency appraised the new technology. He said that the blockchain provides a new way of recording assets and ownership of new financial products.