US Federal Reserve wants its own digital currency

The US Federal Reserve wants to go further in the development of a digital currency. To do this, the Chairman of the US Federal Reserve, Jerome Powell, announced in a video message that the US Federal Reserve will seek public comment ” on issues related to payments, financial inclusion, data privacy and information security “.

Apparently, the US Federal Reserve or “the Fed” wants the United States to play a leading role in setting international standards for digital currencies and catch up with other countries, such as China, which have got ahead in this area. China effectively sees digital currency as a way to strengthen its monetary system and a tool for “ soft power ” at an international level.

A discussion paper to be released this summer

Jerome Powell said that “ To help stimulate a broad debate, the U.S. Federal Reserve will be releasing a discussion paper this summer outlining our current thinking on digital payments with particular emphasis on the benefits and risks associated with CBDC in the U.S. context. “.

The CBDC is none other than the central bank’s digital currency. He adds that the Fed plans to play a leading role in developing international standards for CBDCs and that will take some time. Jerome Powell also stresses that the decision will require careful thought and analysis by the public and elected officials, reports Engadget.