Federal Reserves Powell Says CBDCs Need to Coexist With Cash
Comment of the Day

March 23 2021

Commentary by Eoin Treacy

Federal Reserves Powell Says CBDCs Need to Coexist With Cash

This article from Coindesk may be of interest to subscribers. Here is a section:

In recent months, Powell has emphasized several times that the U.S. would not act fast on issuing a digital dollar because of the physical dollar’s status as the global reserve currency. 

The latest comment, though, is in line with Powell’s previous remarks about the Fed taking the prospects for a digital dollar seriously. Powell has said the Fed will engage with the public on the topic in 2021 and will seek congressional approval before issuing one. 

CBDCs are an early-stage payments innovation that governments hope can increase payments efficiency and lower costs by running them on blockchains. The details on CBDCs are still murky, and detractors argue most transactions today involve money that’s already digital. 

There’s a fear some governments may use CBDCs for increased financial surveillance. At the moment, it looks like the U.S. could favor privacy in its CBDC development.

Eoin Treacy's view

I tuned in to this discussion on CNBC last night and what I found interesting is the eagerness central banks have in talking about digital currencies while at the same time saying they are in no rush.

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