Federal Reserve Chairman Jerome Powell believes that the United States should rather focus on reliability than speed in any development of a central bank digital currency (CBDC), Reuters has learned, citing Powell's statement.
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During a panel discussion on digital payments hosted by the International Monetary Fund (IMF), Powell said the US believe it is "more important to get it right than to be first."
"We do think it is more important to get it right than to be first and getting it right means that we not only look at the potential benefits of a CBDC, but also the potential risks, and also recognize the important trade-offs that have to be thought through carefully," Powell said.
The Fed's Chair also reminded the need to protect a CBDC from cyberattacks, counterfeiting and fraud. Powell added that the Fed has not made ant decision on issuing CBDC yet, however, admitted that the regulator is conducting research on its own.
In the meantime, IMF Managing Director Kristalina Georgieva said that monetary policy, financial stability, capital flows and international reserves could be together affected by transformations in cross-border payments:
"The stakes are high. Changes to cross-border payments have a bearing on the stability of the international monetary system, on financial inclusion, and on the efficiency of trade and financial markets."
Earlier in October, the G20 announced that together with the International Monetary Fund (IMF), the World Bank and the Bank for International Settlements (BIS) it will formalize the use of CBDCs in banking systems.
According to the international forum, the institutions plan that by the end of 2022 the regulatory framework to regulate stablecoins will be ready, as well as the research and selection of designs, technologies and experiments of CBDCs.
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