US Treasury Secretary Janet Yellen has given her opinion on the potential of a digital dollar, but is hesitant to reach any conclusions at this stage in the proceedings. Yellen said Thursday that no opinion had been formed on whether the Federal Reserve should create a digital version of the dollar, but such a move would require a broad consensus among Congress, the U.S. central bank, and the White House..
This follows recent reports that the Federal Reserve is investigating whether an electronic version of the dollar would be beneficial or not. Yellen said she sees the pros and cons of the digital dollar. Although you have thoughts about its implementation, you feel that more research needs to be done before finding definitive answers.
According to Yellen, the advantages of digital currency issued by a central bank need further study, including its effects on banking institutions.
Conversely, Federal Reserve Governor Lael Brainard, who has been elected by President Biden to be vice president of the US central bank, has urgently called for the establishment of a digital dollar. She hinted that she can’t imagine not having one when China and other nations are developing their own central bank digital currencies, which she sees as a race to the top.
According to the Fed secretary, a consensus is required before moving forward. Yellen said that The Federal Reserve was working on a study on the matter and it would be available soon, and they are aware that a broad agreement among the authorities would be needed before they could move forward.
“This is a decision that is important and needs consensus. There are some benefits, but also significant costs.”
As Cointelegraph reported in September, Fed Chairman Jerome Powell stated that there was no need for the central bank to rush its digital currency development plans. Despite several central banks creating their own CBDCs, Powell said the Fed was not quick to adopt the move.
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