Jerome Powell, the U.S. Federal Reserve Chair, sounds quite unsure about releasing the central bank digital currency (CBDC) in the U.S. His comments came in contrast with Bitcoin surpassing $11,500 and are now nearing $12,000. On Monday, October 19, 2020, Bitcoin closed at $11,764, which means it is now reaching the goal of $12,000 that most of the crypto analysts had predicted.
Fed Is Evaluating Cost and Benefits of CBDC: Jerome Powell
A virtual panel was hosted by the International Monetary Fund (IMF) on Monday in which Jerome Powell made these comments. He mentioned that the Federal Reserve is currently evaluating the total cost and benefits related to the CBDC. There are not any statements regarding the release of central bank digital currency as the Fed is not completely sure about it at the moment.
Currently, there is a kind of rat race in launching the CBDC within different countries and Powell’s comments were in contrast to this only. He said that it is more important for the U.S. to issue its central bank digital currency at the right time and not be the first one to launch it. He said this because he wants to focus on the benefits as well as the risks which are associated with issuing CBDC.
Federal Reserve Should Be Cautious With CBDC Development
Even though Powell seems to be quite concerned about issuing central bank digital currency. He also mentioned that the Fed needs to be highly cautious about the development of the CBDC. He said this because the U.S. Dollar is already a global reserve currency that is used across the world. These comments show that maybe not releasing one anytime soon but the U.S. is considering the development of its CBDC. USD being the global reserve currency might contribute to the great success of its digital currency as well.