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- CBDC issuance requires a broad consensus among US authorities
- The US FED is currently analyzing and exploring whether the nation needs an electronic version of the greenback USD
- Janet Yellen believes the United States should research more before coming up with any definite conclusion
CBDC or central bank digital currency are being scrutinized by several nations. Following the scenario globally, the United States Treasury Secretary, Janet Yellen expressed her views on the potential digital dollar. However, she has been observed hesitant to come to any conclusions at this stage in terms of proceedings. On Thursday, the US Treasury Secretary cited that she is yet to form a view on whether the Federal Reserve (FED) should issue its own digital version of the US dollar. However, she had also underscored that such a move towards issuing a digital dollar would require a broad consensus among Congress, the central bank of the United States, and the White House.
FED scrutinizes on the requirements for CBDC
Janet Yellen’s hesitated opinion regarding a digital dollar came following some reports. According to the reports, the US FED is currently analyzing and exploring whether the nation needs an electronic version of the greenback USD. Moreover, the central bank also researched whether a digital dollar would be beneficial for their economy.
According to Yellen, she sees both pros and cons that comes with the CBDC. Although Yellen hesitates on the CBDC’s implementation, she believes the United States should research more before coming up with any definite conclusion. Simultaneously, the US Treasury Secretary also highlighted that the advantages of a CBDC requires further study that will include its impacts on the mainstream banking industry.
FED Governor calls for an urgency in issuing digital dollar
While the US Treasury Secretary is hesitant, Lael Brainard, the FED Governorcalls for urgency in establishing their CBDC. In contrast, Brainard has been chosen by President Joe Biden for the vice-chair of the United States central bank.
Following Brainard’s urgency, Yellen suggests that she cannot fathom not having one while other nations including China are creating their CBDC. Notably, Yellen considers any urgency to issue a central bank digital currency as the race to the top.
Digital dollar requires a consensus
According to Janet Yellen, a consensus is significantly required before taking further steps ahead. It is also noteworthy that the FED has been working on a study of the issue, which would be soon available. The authorities are cognizant that broad agreement among agencies would need to take place before they could move ahead.
According to Yellen, such decisions are significant and require consensus. Such a statement arises as CBDC has some benefits, along with some meaningful costs. Following the situation, FED chair Jerome Powell has already highlighted that the central bank does not need to rush with their CBDC development plans.
