The Federal Reserve System is going to reveal this summer a discussion paper on the possibility of issuing a US central bank digital currency (CBDC), according to a press release published by the regulator. The paper will reportedly complement the Fed's research that is already in process.
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"Today we are in the midst of a technological revolution that is changing our world," Federal Reserve Board Chair Jerome Powell said in a video message
The Fed head claims the key focus so far is on whether and how a CBDC could improve on an already "safe, effective, dynamic, and efficient US domestic payments system." Powell also says CBDC could serve as a complement to, and "not a replacement of," fiat money.
As iHodl earlier reported, employees at the Federal Reserve Bank of Boston and the Massachusetts Institute of Technology plan to complete their work related to a prototype of a CBDC by July this year. In August 2020, it was reported that the institutions were working on the development of a digital dollar. The project participants then announced they intended to create a "mechanism and software that meets the needs" of a CBDC for a country the size of the United States.
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