Powell Emphasizes Importance of Cash as Interest for CBDCs Rises
Main page News, US, CBDC, Regulations

Federal Reserve Chairman, Jerome Powell, believes central bank digital currencies (CBDC) should coexist together with cash as the Covid crisis has increased the need for digital payments, Bloomberg reports. In prerecorded video delivered to a financial conference in Basel, Switzerland, Powell said CBDC "need to coexist with cash" and other types of money.

Subscribe to our Telegram channel to stay up to date on the latest crypto and blockchain news.

"Relevant to today’s topic, one of the three key principles highlighted in the report is that a CBDC needs to coexist with cash and other types of money in a flexible and innovative payment system."

Powell also emphasized that the Fed was involved in shaping the Bank for International Settlements' report, which assessed the feasibility of CBDCs in helping central banks to deliver their public policy objectives.

US Fed Banks Collectively Explore CBDC

It is worth noting also that last year Powell said that the United States should rather focus on reliability than speed in any development of a CBDC. 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."

Access more than 50 of the world's financial markets directly from your EXANTE account – including NASDAQ, London Stock Exchange and Tokyo Stock Exchange.

Read also:
Please describe the error