Fed to Launch CBDC Review as Early as This Week
The last week has started with amazing news for crypto-enthusiasts. According to the Wall Street Journal, the US Federal Reserve will begin a review of the risks and opportunities associated with introducing a central bank digital currency (CBDC) as early as this week.
Speaking at the ECB’s Central Bank Forum last week, US Federal Reserve Chairman Jerome Powell admitted that there is “a sense of urgency” in digital currencies and that we should not wait too long. The Federal Reserve will issue a document seeking public feedback on the issue, according to the Wall Street Journal on Monday. Powell stated that the regulator’s goal is to provide a safer and more reliable solution rather than to become one of the world’s first issuers.
Powell and other Fed officials stated that the organization will decide whether or not to issue the CBDC after reviewing it. The commission’s purpose is to analyze the matter and determine if the digital dollar offers clear and real benefits above the risks and costs of future development. The CBDC review procedure will begin with the publication of an examination of the issue and the solicitation of public opinion.
According to Bank for International Settlements (BIS) publications, Central Bank digital currency may be seen as a haven during a possible crisis. In light of the significant volatility of commercial cryptocurrencies, central banks are considering issuing their digital coins. Governments are drawn in by the prospect of fast international transactions with low costs and few or no regulatory constraints. However, the reports propose that rigorous laws should regulate CBDC transfers and storage. This is how governments intend to reduce risks to the commercial financial sector while also allowing for a transition period before the implementation of digital money. Price controls are also being considered by central banks.
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Tatiana Leveria, Team bit4you
