Jerome H. Powell, the chair of the Federal Reserve, said the Fed’s research into central bank-issued digital currencies is early and exploratory — and that U.S. officials would only consider issuing a digital dollar if they believed there was a clear use and if the idea had widespread public and political buy-in. “You can expect us to move with great care and transparency,” Mr. Powell said on Monday at a Bank for International Settlements event on central bank innovation. “We would not proceed with this without support from Congress.”Mr. Powell said that at this stage, the Fed is looking into whether there is even a need for a central bank digital currency — a technology-based instrument with official government backing. Payment systems are already speeding up and banks offer digital money in the form of bank deposits, he noted, so the need for a central bank version is an open question. “Does the public want, or need, a new digital form of central bank money to complement what is already a highly efficient, reliable and innovative payments arena?” he said.

Source: International New York Times March 22, 2021 15:14 UTC