Per a press release issued by the U.S. Federal Reserve (FED), represented by its Chairman Jerome Powell, the institution will publish a “response” to the advances made in the crypto industry. The document claims that the global payments landscape has “driving rapid change”. Thus, the institution will explore mechanisms to “refine its role”. Powell said the following on the document:
Our forthcoming paper on the evolution of digital payments is intended—along with our other work as a supervisor, regulator, and payment system operator—to advance the objective of ensuring that the payments system and the economy work for all Americans.
Powell highlighted the potential that cryptocurrencies and digital assets have for improving the current financial system. Specifically, the government official referred to central bank digital currencies (CBDCs) as the main tool to benefit the general public. Powell added:
As the central bank of the United States, the Federal Reserve is charged with promoting monetary and financial stability and the safety and efficiency of the payment system. Pursuit of these core functions we have been carefully monitoring and adapting to the technological innovations now transforming the world of payments, finance, and banking.
In addition, the FED is to explore the “risk” that could emerge with CBDCs and digital assets as part of the financial system. The institution will evaluate the “effectiveness” of these assets to improve key aspects in the payment system: security, dynamic, and their capacities to aid in the domestic and corporate sector.