US Federal Reserve evaluates issuing the digital dollar
Lael Brainard says that the Fed should analyze whether innovative technology could pose risks to the country's financial system
The US Federal Reserve It is analyzing whether the launch of its own digital currency could be an effective counter to reduce operating costs and also provide payment security, as reported by Lael Brainard, member of the board of governors of the FED, during a conference on payments at the Stanford Graduate School of Business in California.
“Given the important role of the dollar, it is essential that we remain in the research and development of policies regarding CBDC (digital currency of the central bank),” Brainard said.
He also reported: “We are collaborating with other central banks as we move forward in our understanding of the central bank’s digital currencies”, adding that digitalization has the potential to offer greater value and convenience at a lower cost.
However, Brainard warned that the Fed should assess whether blockchain technology would make the payments safer in order to avoid a risk not only against financial stability but also against privacy and fraud protection.
In recent years, central banks have shown a growing interest in digital currencies, this could be beneficial for a better performance in the world of crypts because their linking would represent a challenge for new players who are outside the regulatory financial system barriers.
K. Villarroel
Source: diariobitcoin
