Jerome Powell: Digital dollar cannot be issued without regulatory approval – Bits Media

The Chairman of the US Federal Reserve said, that Congress should take direction from the Fed, before implementing a central bank digital currency.

Jerome Powell (Jerome Powell) testified before the US House Financial Services Committee. Before With the launch of the digital dollar, the Fed needs to carefully study everything, since this will significantly affect the financial system:

“This is potentially a very important financial innovation, which will affect all Americans. Our plan is, to work on both political, and on the technological side of the issue in the coming years. And then present your recommendations to Congress.".

According to the official, the introduction of the digital dollar will provide citizens of the country with experience in conducting financial transactions using digital currencies. The Fed has a lot of work to do, warned Powell.

One of the key difficulties is that, To understand, will a central bank digital currency improve the already existing secure and efficient domestic payment system, Powell says. Potentially, the digital dollar could maintain the dollar's international dominance, however, Fed analysts cannot yet give an accurate forecast.

Recall, The Federal Reserve is considering the prospects for introducing a sovereign digital currency with 2017 years and, according to Congressman Jim Himes (Jim Himes), the longer the US government waits before, how to make a decision, the more the United States lags behind other countries. The congressman called for legislation to be passed as soon as possible.

Previously, Deutsche Bank Chief Economist Matt Luzetti (Matt Luzzetti) stated, that the Fed's aggressive actions will accelerate the economic recession in the United States.