The US Federal Reserve has revealed that it is starting to consider launching a national digital currency. The Fed opined that the best time to launch a CBDC is now given the advancements in technology and the improvement of current financial infrastructure.
The Fed Makes US CBDC Announcement Official
Per multiple reports, this new announcement by the US Federal reserve is its most serious announcement since discussing that it had started researching CBDC some months back. Part of the announcement states that the Fed keeps exploring several benefits and risks associated with having a national digital currency.
However, it is yet to take a stance on whether to start the launch process. Also, the Fed stated that it is seeking public comments on the issue, especially in terms of tech research and experimentation.
— Federal Reserve (@federalreserve) April 13, 2022
Part of the Fed’s announcement contained a CBDC faq where it explained why it is now deliberating on having a CBDC. The Fed claimed that the availability of digital wallets, cryptos, mobile payment apps, stablecoins, and blockchain technology makes it easy to create a national digital currency that makes the current local payments infrastructure better.
The Fed further disclosed that a CBDC would be beneficial to the nation’s overall economy as it offers more yield benefits than other options. The Fed also referenced a paper published earlier in the year which contained detailed discussions on the gains, risks and issues of launching a national digital currency.
Adopting A US CBDC Is Long Overdue
It is an open secret that the US hasn’t been as quick as other top economies to adopt or implement a national digital currency. Most top government officials claimed that the reason the US isn’t in a rush to implement the digital dollar. Instead, it aims to have the conditions right rather than launching and changing the national digital currency.
Strangely, one of the Fed’s governors opined that the US doesn’t need a national digital currency and that there is too much hype surrounding blockchain technology. According to this governor, blockchain technology’s efficiency is “slightly exaggerated.” Fed chair Jerome Powell revealed no certainty or schedule is available over when the US will own a CBDC.