Federal Reserve Chairman Jerome Powell said the US central bank is considering whether to issue a digital dollar with a “very wide range”. He noted that the Fed is working with Congress and the executive branch on whether to issue a central bank digital currency.
Fed Chair Jerome Powell on Digital Dollar Progress
Federal Reserve Chairman Jerome Powell provided an update on the central bank’s digital dollar activity Tuesday during a group discussion on digital finance hosted by France’s Banque. .
“In the United States, cash is not going away. We still use cash pretty much,” he began. However, the central bank noted: “It is decreasing, not in absolute terms but compared to cashless payments, it is falling.”
Powell explained that the Federal Reserve is looking very closely at the “potential costs and benefits” of issuing central bank digital currencies (CBDCs) in the United States.
We are looking at it very carefully. We’re assessing both policy issues and technology issues, and we’re doing that on a very broad scale.
However, Powell clarified: “We haven’t decided to move forward, and we don’t see ourselves making that decision for a while.”
“We find ourselves collaborating with Congress… but also with law enforcement, which brings expertise to many of the issues that we have to deal with here,” the Fed chair explained.
He added, “At the end of the day, we will need approval from both the executive branch and Congress to proceed with a central bank digital currency,” stating:
We consider this to be a process that takes at least a couple of years where we are working on and building public confidence in our analysis and final conclusions.
Noting that the Fed has yet to make a decision on whether to issue a digital dollar, Powell concluded: “That is our position, we have a lot of work to do.”