Jerome Powell, chairman of the Federal Reserve, said on the 18th that the central bank digital currency (CBDC) needs to coexist with cash.
Jerome Powell, who attended the Virtual Payments Conference hosted by the Basel Bank Supervisory Board (BCBS) that day, mentioned the CBDC report recently co-published by the Bank for International Settlements (BIS), the Fed, and the central banks of seven countries.
“One of the three key points this report highlights is that CBDC needs to coexist within a flexible and innovative payment system with cash and other types of currency,” he said. He added, “The development of the global payment system can take place not only from the public sector, but also from the private sector.”
Chairman Jerome Powell explained that the Fed’s board is conducting an experiment on CBDC with the Federal Reserve Bank of Boston. Until now, the Boston Federal Reserve has been working with MIT to build a platform suitable for digital dollars.
In recent months, Chairman Jerome Powell has repeatedly emphasized that the United States will not be in a hurry to issue digital dollars. He cited the status of the real dollar as a global key currency as a reason.
However, in his most recent comment, Jerome Powell said the Fed was cautious about the digital dollar. He said that if the Fed talks with the public on the CBDC in 2021 and issues a digital dollar, it will seek congressional approval in advance.
English article: In-Sun Jeong, Translation and Editing of CoinDesk Korea
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