US Federal Reserve: the digital dollar can be a monetary policy tool

Specialists of the US Federal Reserve (FRS) analyzed various studies of digital currencies of the Central Bank and published a report on the results.

According to
report by the Fed’s researchers, Before starting a digital dollar, It is necessary to give a clear answer to the most The main question: Will the state cryptocurrency be a full replacement of fiat money and bank deposits? It doesn’t matter, Who will be issued by a digital dollar - a private company or the central bank itself.

The Fed began to study the possibility of the release of its own stablecoin back in February. However, the department considers, that for a complete understanding of the principles of digital currencies and evaluating their possible consequences for the country's monetary system, It is necessary to take into account the achievements as individual researchers, so and central banks.

Analyzing various reports on digital currencies from the Central Bank, Fed notes the concern of politicians, that state stabilcoins can replace the main source of bank financing. After the launch of such digital currencies, the need for the services of commercial banks will disappear, which in turn will lead to a reduction in their lending. On the other side, State digital currencies will increase access to financial services for people, who do not have a bank account and who cannot use the basic financial services.

Having studied different points of view on this subject, Specialists of the Central Bank of the United States recognized, that a digital dollar can act as a tool of the country's credit and money policy. The Fed is carefully studying the scenarios for using the digital dollar and its possible consequences for the US economy. The decisive factor for the release of state digital currency is its flexibility, so that the state could quickly respond to macroeconomic shocks. For this, it is necessary to identify, how the digital dollar will differ from the usual means of payments and savings.

Last month, Fed Chairman Jerome Powell (Jerome Powell) stated, that the digital dollar is not a priority task for the country. It is much more important to conduct a number of versatile research and eliminate all related risks, so that the start of the digital currency does not take place "in haste". Besides, Last year, Powell said, that the advantages of the digital dollar are not yet obvious.