{"id":30318,"date":"2020-10-19T18:36:26","date_gmt":"2020-10-19T15:36:26","guid":{"rendered":"https:\/\/forklog.com\/en\/?p=30318"},"modified":"2025-08-27T21:43:38","modified_gmt":"2025-08-27T18:43:38","slug":"fed-chair-for-the-united-states-getting-the-digital-currency-right-matters-more-than-being-first","status":"publish","type":"post","link":"https:\/\/u1f987.com\/en\/fed-chair-for-the-united-states-getting-the-digital-currency-right-matters-more-than-being-first\/","title":{"rendered":"Fed Chair: For the United States, getting the digital currency right matters more than being first"},"content":{"rendered":"<p>In creating a cross-border digital currency for the Federal Reserve System (Fed), it is more important not to rush its issuance but to do it with the right approach, said Fed Chair Jerome Powell.<!--more--><\/p>\n<blockquote class=\"twitter-tweet\" data-lang=\"en\">\n<p dir=\"ltr\" lang=\"en\">.<a href=\"https:\/\/twitter.com\/KGeorgieva?ref_src=twsrc%5Etfw\">@KGeorgieva<\/a>: Technology is accelerating and changing our lives. And yet, <a href=\"https:\/\/twitter.com\/hashtag\/CrossBorderPayments?src=hash&#038;ref_src=twsrc%5Etfw\">#CrossBorderPayments<\/a> remain slow, opaque, costly, and inaccessible to many. <a href=\"https:\/\/t.co\/EFHUv21SWz\">https:\/\/t.co\/EFHUv21SWz<\/a> <a href=\"https:\/\/twitter.com\/hashtag\/IMFmeetings?src=hash&#038;ref_src=twsrc%5Etfw\">#IMFmeetings<\/a> <a href=\"https:\/\/t.co\/HhmJWwxVkR\">https:\/\/t.co\/HhmJWwxVkR<\/a><\/p>\n<p>\u2014 IMFLive (@IMFLive) <a href=\"https:\/\/twitter.com\/IMFLive\/status\/1318162134245703685?ref_src=twsrc%5Etfw\">October 19, 2020<\/a><\/p>\n<\/blockquote>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p>Speaking on a panel discussion on digital payments organized by the International Monetary Fund, he stressed:<\/p>\n<blockquote>\n<p>\u201cFor the United States, it is more important to get everything right than to be first.\u201d<\/p>\n<\/blockquote>\n<p>Powell explained that the right approach involves studying not only potential benefits of CBDC but also possible risks. In his words, there will be \u201cimportant trade-offs\u201d that must be carefully considered.<\/p>\n<blockquote>\n<p>\u201cWe bear responsibility to both the country and to the world that any steps taken for the U.S. digital currency be safe,\u201d Powell noted.<\/p>\n<\/blockquote>\n<p>The Fed chair outlined several policy and operational questions that need to be comprehensively analyzed before issuing a CBDC:<\/p>\n<ul>\n<li>How to protect the digital currency from cyberattacks, counterfeiting, and fraud?<\/li>\n<li>What impact will CBDC have on monetary policy and financial stability?<\/li>\n<li>By what means can illicit activity with CBDC be prevented while ensuring user privacy and security?<\/li>\n<\/ul>\n<p>Powell said that, although the Fed has not yet decided to issue a digital currency, it is actively conducting research on the topic, both on its own and in partnership with other central banks and the Bank for International Settlements.<\/p>\n<p>The Fed chief noted that the Federal Reserve Bank of Boston, in collaboration with the Massachusetts Institute of Technology <a href=\"https:\/\/u1f987.com\/en\/news\/fed-outlines-research-into-issuing-a-digital-dollar\">is developing<\/a> a hypothetical CBDC.<\/p>\n<blockquote>\n<p>\u201cThese types of experiments help our understanding of the risks and benefits of CBDC, measuring trade-offs between different designs and systemic mechanisms and assessing risks to safety,\u201d Powell added.<\/p>\n<\/blockquote>\n<p>Earlier, the Fed, the ECB, the Bank of England, the Bank of Canada, the Bank of Japan, as well as the central banks of Sweden and Switzerland, together with BIS <a href=\"https:\/\/u1f987.com\/en\/news\/bis-and-seven-central-banks-outline-core-cbdc-requirements\">presented<\/a> a report on the fundamental principles and key characteristics of CBDC. The working group was established in January 2020.<\/p>\n<p>Follow ForkLog news on <a href=\"https:\/\/twitter.com\/ForkLog\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Twitter<\/a>!<\/p>\n","protected":false},"excerpt":{"rendered":"<p>In creating a cross-border digital currency for the Federal Reserve System (Fed), it is more important not to rush its issuance but to do it with the right approach, said Fed Chair Jerome Powell.<\/p>\n","protected":false},"author":1,"featured_media":30319,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"select":"1","news_style_id":"","cryptorium_level":"","_short_excerpt_text":"","creation_source":"","_metatest_mainpost_news_update":false,"footnotes":""},"categories":[3],"tags":[1095,1249,26],"class_list":["post-30318","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news-and-analysis","tag-cbdc","tag-federal-reserve-system","tag-usa"],"aioseo_notices":[],"amp_enabled":true,"views":"23","promo_type":"1","layout_type":"","short_excerpt":"","is_update":"","_links":{"self":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts\/30318","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/comments?post=30318"}],"version-history":[{"count":1,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts\/30318\/revisions"}],"predecessor-version":[{"id":30320,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts\/30318\/revisions\/30320"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/media\/30319"}],"wp:attachment":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/media?parent=30318"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/categories?post=30318"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/tags?post=30318"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}