- Lael Brainard, Governor of Federal Board in a webcast commended that US is under the process of building the digital currency
- The United States Congress Financial Services Committee on June 11 conducted a meeting on digital dollar foundation
- Congress is proposing various bills focused on discussing the innovations in the direction of digital dollar
The news of development of digital currencies by the government is not new but nations either keep denying it or broadcast it top maximum. The US federals fell in the first scenario, when Federal Chair Jerome Powell completely denied any statements about the US developing a digital dollar. And said they are just exploring the possibilities of a CBDbC but hold no plan to develop it.
Brainard Explains About Feds Plans for Digital Dollar
News broke when Lael Brainard, Governor of Federal Board in a webcast commended that US is under the process of building the digital currency. Brainard in the webcast said the Federal Bank of Boston in collaboration with researchers of Massachusetts Institute of Technology are working on increasing the understanding of digital currencies. They will be building a hypothetical digital currency solely for the purpose of testing in the connected banks. The Federal Reserve will be analysing the potential benefits and risks that will come along with the adoption of the digital US dollar, Brainard further continued.
The above was disclosed in a Webcast titled “San Francisco’s innovation office Hours”. The in-house experiments have been conducted for a long time teaming with the Board’s Technology lab, with the motive of building various ledger platforms and testing them. This vivid multidisciplinary team houses developers from Dallas, New York, Federal Reserve Bank of Cleveland. They are studying the ecosystem of payments, banking and finance along with consumer protection.
Federal System also believes that a seperate system after extensive engagements and deliberations with government boards and stakeholders will be required before issuance of CDBCs. With china already taken leaps in the direction of CBDC the Federal bank is also forming coalitions with the central banks of various countries to decide the future of the digital currencies. The United States Congress Financial Services Committee on June 11 also held a remote meeting whose participants include former Chairman of the U.S. commodity Future Trading Commision, electronic Transactions Associations members and Christopher Gianarlo. The meeting was aimed to discuss the “digital Dollar” bill. Post this a digital dollar foundation was established to lead the discussion on United States CBDCs.
Congress in Support of Digital Currency
Adding to the list of Feds ongoing list of projects with digital currency, Congress is proposing various bills focused on discussing the innovations in the direction of digital dollar. Majority of there bills are supported with Covid-19 outburst. A Fed executive on the same have commented that pandemic can be taken as reminder why a trusted and reliant digital payment system s required. To back this without he pointed towards how post distribution of emergency relief payments digitally spending in the households increased which took a steep hit in the early part of the year.