The Unites States should keep up with the global trend for a central bank-issued digital currency (CBDC) if the country wants to have a sustainable future, Reuters reports, citing Federal Reserve Governor, Lael Brainard. She also said she cannot wrap her head around the fact that the US still has no its own digital currency as other countries like China are moving ahead with their CBDC.
“The dollar is very dominant in international payments, and if you have the other major jurisdictions in the world with a digital currency, a CBDC offering, and the US does not have one, I just, I cannot wrap my head around that. That just does not sound like a sustainable future to me,” Brainard said.
Moreover, she also noted that the adoption of stablecoins by households and businesses might lead to a result where they would “simply lose access to a safe government backed settlement asset.”
Brainard’s comments come after Jerome Powell called for a regulatory framework for stablecoins as this type of assets might be a “significant part” of the payments universe. Speaking at the House Financial Services Committee, Powell warned stablecoins are similar to bank deposits, however, they have no regulation.