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Federal Reserve Chairman Confirms that the United States is Considering the Launch of Digital Currency

11/22/2019
Investors' Daily Tribune

Jerome Powell, the Chairman of the United States Federal Reserve has confirmed that the government is studying the prospects of launching its own Central Bank Digital Currency (CBDC). The announcement has come at a time when a number of nations around the world have also been hinting at launching their own national digital currency, in a race to be the first in the field.

In a letter sent to lawmakers, earlier in the week, Powell had stated that the United States is scrutinizing the possibility of launching its own digital currency, which would be made available not only at the retail level, but also for enterprises, and households.

The letter came on the heels of calls by insiders from the cryptocurrency community and legislators, encouraging the United States to launch its own digital currency, even as other nations such as China have rapidly push ahead with their own plans.

U.S. Pushes to Keep Ahead of China

The chairman’s letter stated: “While we are not currently developing a central bank digital currency, we have assessed and we continue to carefully analyze the costs and benefits of pursuing such an initiative in the U.S.”

In October, Representatives Bill Foster and French Hill had asked the Federal Reserve to consider the launch of a digital currency, stating alignment with paper money in the future. They also stated that the United States should not follow private companies in the development of digital currencies, even as Facebook’s Libra continues to receive criticism from lawmakers in the country.

Many have called for the U.S. to speed up the preparation of relevant regulations to govern a potential digital currency initiative, with the fear that the United States would fall behind China in its endeavor. Having filed thousands of patents, currently China appears to be leading the race in terms of innovation, development, and implementation, as the authorities have been fully supporting the development of block chain and associated market technologies.

While China’s moves are good for the global market, their potential leadership in emerging technologies is worrying to the U.S.