The Fed may launch a CBDC review soon this week

The US central bank is studying cryptocurrency options and will publish its results soon.

It is said that the Federal Reserve will release the long-awaited CBDC study

This week, the Federal Reserve can finally begin the long-awaited CBDC review process, according to a report by the US Federal Reserve. The Wall Street Journal. As part of this process, the Fed also plans to publish a paper on the potential of US central bank digital currencies for both lawmakers and the public to consider. However, it looks like the Fed will continue to act with caution.

This follows a Senate Banking Committee hearing last week in which Powell discussed digital central bank currencies. He said it would be essential to cooperate with Congress on this issue.

Federal Reserve officials They don’t agree On the issuance of a central bank digital currency, so while the review may begin this week, a final decision is unlikely any time soon. Powell He said in September That a central bank digital currency would only be introduced if there were “clear and tangible benefits that outweigh any costs and risks.”

A more formal review of the central bank digital currency has already been postponed Earlier in the summer Until September, to be postponed again.

Other countries acted first on central bank digital currencies

As with crypto ETFs, some other countries have already made decisions regarding digital central bank currencies. For example, China launched the digital yuan. Much has already been embedded in the official reviews of central bank digital currencies, with Canada seems optimistic on CBDCs. Moreover, the Hong Kong Monetary Authority, the Central Bank of Hong Kong, issued a technical white paper on his CBDC, which has been researched since 2017.

While the governor of the Federal Reserve Lyle Brainard says that the United States needs to be a leader and deal more aggressively with its CBD, Powell maintains That the United States is not behind: “It’s more important to do it right than to do it quickly…we are the world’s reserve currency, and I think we are in a good position to do that analysis and make that decision.” Others, such as Fed Vice Chairman Randall Quarles, I wonder if CBDC is necessary Given the current interest of stablecoins.

The Federal Reserve’s stated goals It is to provide the nation with a “secure, resilient and stable monetary and financial system”.

(Disclaimer: The author of this piece owns BTC, ETH, and many other cryptocurrencies.)