The US Federal Reserve (FED) has been conducting research on digital currencies for a while and has been preparing a report on the subject. That report has finally been published. The FED’s digital currency report, on the one hand, contains very important details about the digital version of the dollar. The FED stated that a clear position was not taken against digital currencies in the report. However, some points in the report reveal the reservations of the FED.
According to the report prepared by the FED, the digital dollar will especially benefit the Americans. Because, thanks to this system, both the costs will decrease and the speed of the transactions will increase. Moreover, people who do not want to open a bank account can be included in this system. However, this does not mean that a transition to the digital dollar is necessary. The digital dollar may raise privacy concerns, according to the Fed.
The financial system can fundamentally change
The most important detail in the report prepared by the FED is about the traditional financial system. The move to the digital dollar could fundamentally change the financial system, according to the US Federal Reserve. Moreover, with the transition to the digital dollar, there may be problems in financial stability. The US monetary authority states that it cannot act to produce a digital version of the dollar without formal approval from Congress. However, according to the FED, not taking action on digital currencies is also not a good thing. Because the US’s delay in digital currency may damage the US’s position in the global markets.
Jerome Powell, Chairman of the US Federal Reserve, made some statements on the subject. “As a central bank, we look forward to interacting with the public, elected representatives and a wide range of stakeholders as we examine the pros and cons of digital currency,” said Powell, stating that the work to be done should receive the support of the majority.
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