Secretary to the US treasury, Janet Yellen, has claimed that she has yet to conclude which agency should be mainly responsible for the development and issuance of the e-dollar. She further said she thinks that such responsibility should be given to the federal reserve but only after consulting with other relevant authorities (the White House, Legislature and America’s apex bank).
Varying Opinions On the Usefulness Of The e-USD
Yellen’s remarks came when the federal reserve revealed that it is yet to conclude its research on the benefits of the e-USD for the American economy. She further remarked that there are advantages and disadvantages of the e-USD like any other thing. While Yellen has her ideas on how the e-USD can be implemented, she opines a need for adequate research before implementation.
Yellen further remarked that there is a need to know how the national digital currency will affect financial institutions even though many of its benefits have been made clear. Conversely, Lael Brainard (incoming US central bank vice-chairman) opined that the country must have a national digital currency like other top economies (such as China) who have theirs already. She further stated that authorities need to treat the issuance of the e-USD as a matter of urgency.
A Unanimity Is Necessary
Nevertheless, Yellen reiterated the need for all relevant agencies to sync with the modalities involved in establishing the e-USD before issuing it. She revealed that the Fed would soon make available the report of its research on the issuance of a national digital asset. The Fed also agreed with Yellen on the unanimity among authorities before making any additional effort towards establishing the digital dollar.
An official statement from the Fed stated that “this decision is vital and requires consensus. There are considerable costs even though it has lots of advantages too.” As widely reported a few months ago, Jerome Powell stated that the US’s apex bank should take its time developing and issuing the e-USD. The Fed chair further said that the US central bank shouldn’t hurry because other nations’ central banks are in a fierce race to issue their national digital currency.