Fed to present report on cryptocurrency launch

The United States Federal Reserve (Fed) plans to publish a report in a few months that will explore the implications of technology for digital payments, including a section focused on the possibility of the central bank issuing its own digital currency.

This was announced by Fed Chairman Jerome Powell in a video message. This report will be a complement to the research on advantages and risks that the Fed is conducting in relation to the possibility of issuing a digital dollar.

“As the central bank of the United States, the Federal Reserve is in charge of promoting monetary and financial stability, as well as the security and efficiency of the payment system. In pursuit of these key functions, we have been monitoring and adapting to innovations technology that is transforming the world of payments, finance and banking,” explained Powell.

The Fed’s focus on whether or not to issue a digital currency is on answering the question of whether such a currency would improve a system “that is already secure, effective, dynamic and efficient.”

“We believe that it is important that any possible digital currency of a central bank serves as a complement and not as a substitute for cash and the digital forms of the dollar of the private sector, such as bank deposits,” added the president of the Reserve

Powell has assured that the Fed is focused on “better understanding” all the opportunities and risks associated with the new digital payment mechanisms.

K. Tovar

Source: dpa