The Central Bank of America will soon publish a paper on central bank digital currency (CBDC), Federal Reserve Chairman Jerome Powell said on <a href="https://www.reuters.com/article/usa-fed-powell-cbdc/update-1-fed-to-release-paper-on-central-bank-digital-currency-soon-powell-says-idUSL1N2QO2UK?rpc=401&amp;" target="_blank" rel="nofollow noopener">Wednesday</a>.
<h2><strong>U.S. Fed Will Publish Paper on Digital Currency Soon</strong></h2>
The U.S. Federal Reserve’s research on <a href="https://www.cryptoknowmics.com/news/fed-governor-waller-backs-stablecoins-is-doubtful-of-the-need-for-cbdc/">central bank digital currency</a> (CBDC) was initially scheduled to be released over the summer regarding a discussion on whether the United States should issue a CBDC.

While Fed Chairman Jerome Powell said that no final decision has been made on whether a digital currency should indeed be issued, the ultimate priority will always be for the U.S. payments system to remain “stable and trustworthy.”

According to him, when assessing a CBDC, the main highlight will be if there are “clear and tangible benefits that outweigh any costs and risks.” On the country being currently behind the CBDC race, <a href="https://www.cryptoknowmics.com/news/jerome-powell-fed-reserve-chair-says-central-bank-could-start-taper-in-2021/">Powell</a> said:
<blockquote><em>“It’s more important to do this right than to do it fast. 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.”</em></blockquote>
<h2><strong>MIT Will Aid in the CBDC Research</strong></h2>
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.

A multi-year research will be undertaken with the Massachusetts Institute of Technology (MIT) to explore the technology that could be used for a CBDC with the first phase of the research expected soon.

In the meantime, authorities appear to have a different viewpoint on the need for a central bank digital currency (CBDC). For instance, Fed Governor Lael Brainard said that the U.S. should be leading in the CBDC race when other countries such as China have already advanced into issuing their own digital currency. Meanwhile, Fed Vice Chairman for Supervision Randal Quarles and others are skeptical towards it.

U.S. Fed Will Publish Paper on CBDC Soon: Jerome Powell

The Central Bank of America will soon publish a paper on central bank digital currency (CBDC), Federal Reserve Chairman Jerome Powell said on Wednesday.

Jafrin is a cryptocurrency journalist/researcher fascinated by the world of decentralization. She is hopeful towards blockchain’s innovation and its potential to reshape the world for good. Currently, she is bringing out the best of cryptosphere via covering the latest ins and outs of the blockchain space.

U.S. Fed Will Publish Paper on CBDC Soon: Jerome Powell

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