US Federal Reserve Rep Says Digital Dollar Still In Formative Stage
Washington,
November 14, 2020
US Federal Reserve Rep Says Digital Dollar Still In Formative Stage
Criptotendencias 11/14/2020 On Thursday, a hearing was held by the House Financial Services Committee where the issue of digital currencies and the digital dollar in particular was addressed. At this hearing, Randal Quarles, vice president of supervision of the Federal Reserve (FED), indicated that the actions of the central bank are still in the formative stage with respect to a digital dollar. Previously, a Deutsche Bank strategist had commented that the United States and some European countries have to advance in the development of digital currencies issued by their central banks in order not to be left behind in this type of technologies when they start operating in the medium to long term . Also, at the hearing, Representative French Hill took the floor to question the Fed's attitude on its changing position regarding digital currencies. French Hill was one of the first lawmakers interested in creating a digital dollar in 2019 when they sent a letter to Fed Chairman Jerome Powell. For his part, Powell replied that there was no active investigation into digital currencies issued by central banks from the Fed. Quarles also stated that: "I still think it would be premature to say that we believe this is a solution that the United States would have to implement. We are weighing the pros and cons, there are pilot projects underway. This is still in the early stages. I would not say that we have changed our position and I think this is something that the United States needs." Solutions to problems The issue of CBDCs, especially in countries with advanced economies, goes beyond the study and application of these digital currencies, since the problems raised by each nation must first be resolved. In this way, Norway recently reported that there is no rush to issue a digital currency and thus we also find other countries such as the United States where issues regarding the privacy of users in the use of these CBDCs also generate controversy. |