HomeDigital CurrencyFed to release paper on central bank digital currency soon, Powell says...

Fed to release paper on central bank digital currency soon, Powell says – Reuters

Sept 22 (Reuters) – The Federal Reserve will "soon" release research examining the costs and benefits of a central bank digital currency, or CBDC, Fed Chair Jerome Powell said on Wednesday.
Crypto enthusiasts and members of the financial industry are eagerly awaiting the Fed's research, which was initially slated to be released over the summer, for hints on where policymakers stand on whether the United States should issue a CBDC.
Powell said on Wednesday that no decision has been made and that the priority is for the U.S. payments system to remain "stable and trustworthy."
"We're working proactively to evaluate whether to issue a CBDC and, if so, in what form," Powell said in a news conference following the conclusion of the U.S. central bank's latest two-day policy meeting.
The ultimate test that will apply when assessing a CBDC, he told reporters, is if there are "clear and tangible benefits that outweigh any costs and risks."
The Fed chief said the discussion paper, announced in May, will tackle some of the public policy issues surrounding a CBDC and set the stage for the central bank to seek feedback on the issue from lawmakers and the public, Powell said.
The Boston Fed is also undertaking a multi-year research with the Massachusetts Institute of Technology to explore the technology that could be used for a CBDC – with the first phase of the research expected soon.
A digital currency issued by the central bank would be different from cryptocurrencies such as bitcoin, which are decentralized and can fluctuate wildly in value. While the exact structure hasn't been decided, a CBDC could give the person or business who holds it a direct claim on the central bank, the same as with physical cash.
Fed officials appear divided on the need for a CBDC. While some, including Fed Governor Lael Brainard, say the United States should be a leader in the area at a time when other large economies such as China are moving more aggressively, Fed Vice Chair for Supervision Randal Quarles and others are more skeptical that the benefits will outweigh the costs.
Powell on Wednesday repeated his view that he doesn't think the U.S. is behind on its efforts.
"It's more important to do this right than to do it fast," he said. "We're the world's reserve currency and I think we're in a good place to make that analysis and to make that decision."
Our Standards: The Thomson Reuters Trust Principles.
Subscribe to our daily curated newsletter to receive the latest exclusive Reuters coverage delivered to your inbox.
Reuters, the news and media division of Thomson Reuters, is the world’s largest multimedia news provider, reaching billions of people worldwide every day. Reuters provides business, financial, national and international news to professionals via desktop terminals, the world's media organizations, industry events and directly to consumers.
Build the strongest argument relying on authoritative content, attorney-editor expertise, and industry defining technology.
The most comprehensive solution to manage all your complex and ever-expanding tax and compliance needs.
The industry leader for online information for tax, accounting and finance professionals.
Access unmatched financial data, news and content in a highly-customised workflow experience on desktop, web and mobile.
Browse an unrivalled portfolio of real-time and historical market data and insights from worldwide sources and experts.
Screen for heightened risk individual and entities globally to help uncover hidden risks in business relationships and human networks.
All quotes delayed a minimum of 15 minutes. See here for a complete list of exchanges and delays.
© 2022 Reuters. All rights reserved



Please enter your comment!
Please enter your name here

Must Read