Fed report reviews all directions of digital dollar adoption

[Digital Today Reporter Choo Hyun-woo] On the 25th, the US Federal Reserve (Fed) released a report titled’Prerequisites for Digital Currency (CBDC) issued by the Central Bank’, revealing the Fed’s position on the issuance of digital dollars ( Local time) Coinpost reported.

Fed Chairman Jerome Powell said in the report, “Digital dollar is a high priority agenda,” and “It is necessary to carefully review the various benefits and problems that can be brought about by digital dollar issuance.”

Chairman Powell was not willing to speed up the adoption of digital dollars. The view is that direction is more important than speed. The Fed’s goal is to achieve a digital transformation of money and finance without harming the current dollar hegemony.

The report pointed out that for the introduction of digital dollars, five prerequisites: ▲Establishing clear policy goals ▲Supporting various stakeholders ▲Strong legal binding force ▲Excellent technology ▲Market readiness must be met.

In particular, it focused on establishing clear policy goals. It explained that the issuance of digital dollars is possible within the scope of the stability and efficiency of the US payment system, as well as the stability of finance and finance.

To this end, a wide range of discussions and social agreements that the government, financial institutions, companies, and users can all agree on must be premised. Sometimes strong legal binding force is also required.

Above all, he emphasized that digital dollar distribution could be limited if it does not provide convenient functions and benefits for end users.

The Fed explained that the report was not intended to determine the adoption of digital dollars, but rather as an opportunity for discussion. In addition, considering various physical and economic conditions, it is expected that it will take a considerable amount of time for several years or more.

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In connection, Jerome Powell, Fed Chairman Jerome Powell, attended the US House Financial Services Commission and said, “We are conducting a multilateral review for the introduction of digital dollars.” He said, “We have no official plans yet, but we are working with other central banks to discuss CBDC.”

Author/ Translator: Jamie Kim
Bio: Jamie Kim is a technology journalist. Raised in Hong Kong and always vocal at heart. She aims to share her expertise with the readers at blockreview.net. Kim is a Bitcoin maximalist who believes with unwavering conviction that Bitcoin is the only cryptocurrency – in fact, currency – worth caring about.