The U.S. Federal Reserve is set to publish a research paper on a central bank digital currency this summer, Chairman Jerome Powell announced Thursday.
The paper will focus on assessing the benefits and risks of issuing a CBDC.
Powell claims that the U.S. is “adapting” to advances in the payment sector, adding that central banks can take advantage of “new possibilities” offered by tech innovations:
Our focus is on ensuring a safe and efficient payment system that provides broad benefits to American households and businesses while also embracing innovation
The Fed will be asking for public comment on the initiative before taking any further steps.