In a new move aimed at changing the dynamics of the US financial industry, the country’s Federal Reserve is set to release detailed plans that will guide the process of reviewing the risks and benefits associated with issuing a central bank digital currency (CBDC), a report on The Wall Street Journal (WSJ) show up.
Digital dollar review in the near future
According to the report, the review, which could become official as early as this week, will look at how the digital currency will affect the country’s economy.
If this is done, the move by the US Federal Reserve will come amid similar reviews taking place in many countries around the world in recent times.
The report also noted that although the federal agency may conduct the review, it does not have the regulatory powers to ensure its implementation due to the endless controversy over Fed officials’ merits with regard to technology.
Some of those who have argued in favor of the digital dollar project have long mentioned how it would facilitate international transactions with ease and also how it would introduce the financial market to the unbanked.
However, another angle to consider when working on a CBDC project of this importance is the fact that the United States is an economic power in the current global situations.
Why did it take so long
With many countries around the world stepping up their efforts towards the CBDC project, many expected the US to lead from the front, however, the country’s authorities have been slow to concede to China, which has made giant strides in this project. Digital Yuan Project.
Commenting on this, Federal Reserve Chairman Jerome Powell said advertiser The US has been taking its time to study the benefits of cryptocurrency currencies (CBDC) because of the role the US dollar plays in the international market.
According to him, “doing it right is more important than doing it quickly.”
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