The United States Federal Reserve is exploring the opportunity to develop a US dollar digital currency, reported Cointelegraph. Issues and risks of rolling out a central bank digital currency will be looked into as well.
Jerome Powell, Federal Reserve Board Chairman, said in a letter that although the agency is not currently developing a CBDC, it has evaluated the costs and benefits of such an initiative. He said the Fed is studying this in small-scale, research-focused experiments to understand the opportunities and limitations of CBDCs.
Powell said before issuing a CBDC, the Fed needs to address a lot of legal concerns, including monetary and payment policies, financial stability, supervision and operation. The vulnerability to cyber attacks will also be looked into, said Powell.
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