Federal Reserve Chairman Jerome Powell clarified that while the central bank is continuing to study the possibility of a digital dollar, it would not haste launching one or gives way to the outside pressure from other countries that are jumping out ahead of others.
In addition, he observed that when the US launches a superior Digital Currency, it could make cryptocurrencies like bitcoin or stable coins unnecessary. At this time, the Fed is working on a report that is expected to be published in September this year and was pushed back from being published in July.
It seeks to expand on the benefits, risks, and considerations that must be taken into account when it comes to other forms of digital payments, such as crypto assets, stable coins as well as the formation of a CBDC. This built on the Fed’s work in the last year when it had partnered with an MIT Digital Currency initiative to explore the idea of a CBDC.
However, China is getting closer to the implementation of the digital Yuan, last year, the Bahamas went live with the first CBDC, and today the European Central Bank had launched the next phase of its digital Euro project. In fact, according to a study published in January 2021 by the Bank for International Settlements, around 86% of all central banks have begun to explore CBDCs in some shape or form.