The issuance of the digital dollar remains a possibility, but its importance means that it could take some time before it is launched. In relation to China’s central bank digital currency (CBDC), a correspondent for 60 Minutes, Scott Pelley, asked the Chairman of Federal Reserve, Jerome Powell, if the US is considering launching its own digital dollar.
The chairman went on to admit that the Fed Reserve is considering it and are evaluating whether it will, in fact, be of benefit to the general populace of an advanced economy. This is necessary because swift digital payments are already in existence.
Federal Reserve Responsible For Policy Technology
The Fed Chairman stated that the Federal Reserve is saddled with having a distinct knowledge of the technology powering a digital dollar. In addition, Powell said the development of software was already ongoing at the Federal Board, and other regional Fed Reserves were taking part in research projects as well.
Digital Currencies Contributing To Cash Usage Decline
With the knowledge of several developed countries are currently experimenting with CBDC, Powell revealed that the Fed is in talks with central banks. He also stated cash usage had declined drastically in many countries as digital payments are being employed. However, he added that Americans still loved to use cash.
With doubt, there would likely be a negative effect of launching a digital dollar, and this isn’t lost to the fed chairman as well, stating that the dollar’s importance means that everything has to be right before it can be issued.