Jerome Powell: "Digital currencies of the Central Bank should function together with ordinary money" – Bits Media

US Federal Reserve Chairman Jerome Powell announced the need to launch state digital currencies, which should function with fiat currencies.

He stated this in his speech at the conference, dedicated to virtual payments, organized by the Basel Committee on Banking Supervision. According to Jerome Powell (Jerome Powell), State digital currencies should coexist with cash in innovative payment systems, which will ensure their flexibility. Moreover, not only the state, But the private sector. Powell said, that the Council of Managers of the Fed is experimenting with the state digital currency along with the Boston Federal Reserve Bank and the Massachusetts Institute of Technology (WITH).

Last fall, the Central Bank of the Bahamas has already launched its own digital currency - Sand Dollar, to increase the efficiency of payments and reduce expenses. And the People's Bank of China (NSC) Already repeatedly tested a digital yuan in various cities. President of the European Central Bank Christine Lagard (Christine Lagarde) I suggested, that digital euro can be “released” in the next four years.

However, Powell has been talking more than once, that the United States will not rush with the release of a digital dollar, Since the US state currency has the status of international reserve currency. The development of digital currency of the Central Bank is not the main task of the United States, Even if other countries work hard in this direction. Powell also spoke, that the Fed is seriously referring to the launch of a digital dollar. Therefore, in 2021 The FRS year will actively interact on this topic with the public and discuss the issue of launching a digital dollar with Congress. Before launching state stablecoin, it is necessary to conduct careful research and evaluate all possible risks.

Probably, Now Powell considers it necessary to speed up this process, Since digital currencies of central banks can strengthen state supervision of the financial sector.