US Is Working Hard on Digital Dollar, Libra Was Wake-Up Call: Jerome Powell

News
Tue, 02/11/2020 - 17:17
article image
Alex Dovbnya
Federal Reserve Chairman Jerome Powell has just said that the US is working hard on its own central bank digital currency
US Is Working Hard on Digital Dollar, Libra Was Wake-Up Call: Jerome Powell
Cover image via U.Today

Fed Chairman Jerome Powell has revealed that the US was "working hard" on its own digital currency his testimony before Congress. He acknowledged that Facebook's Libra was "a wake-up call."

Still, the Federal Reserve will not rush to introduce a digital dollar. Powell says that they need to understand what they are doing before making any definitive steps. 

"We should understand benefits and tradeoffs," Powell said.

Powell mentioned that it was "an importantly important thing" to preserve the centrality of the US national currency. 

Related Digital Dollar Project Launched by Former CFTC Chairman and Accenture
Related
Digital Dollar Project Launched by Former CFTC Chairman and Accenture

Numerous countries around the globe are scrambling to digitalize their economies. According to Powell, every major bank is taking "a deep look" at digital currencies. However, he also explained that there was no need to compare Sweden (where cash is now practically nonexistent) to the US. 

"A lot of Northern European economies have moved away from cash."

When asked about China's digital currencies, he made a case for private transactions. 

"A ledger where you know everybody's payments is not something that would be particularly attractive in the context of the US"   

article image
About the author

Alex Dovbnya (aka AlexMorris) is a cryptocurrency expert, trader and journalist with extensive experience of covering everything related to the burgeoning industry — from price analysis to Blockchain disruption. Alex authored more than 1,000 stories for U.Today, CryptoComes and other fintech media outlets. He’s particularly interested in regulatory trends around the globe that are shaping the future of digital assets, can be contacted at alex.dovbnya@u.today.