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Jerome Powell says US central bank digital currency will take “at least two years”

Federal Reserve Chairman Jerome Powell said the U.S. central bank was looking into whether to issue a “very broad scale” digital dollar. The Fed is cooperating with Congress and the executive branch on issuing a digital currency to the central bank.

Fed Chairman Powell on Digital Dollar Progress

Federal Reserve Chairman Jerome Powell gave an update on the central bank’s work in digital dollars on Tuesday during a panel discussion on digital finance hosted by the Bank of France.

“Cash doesn’t disappear here in the United States. We still use money a lot. ” However, the central bank governor noted: “It is declining, not in absolute terms but compared to non-monetary payments, it is declining.”

Powell explained that the Federal Reserve is looking closely at the “potential costs and benefits” of issuing a central bank digital currency (CBDC) in the United States. He explained in detail:

We look at it very carefully. We assess both policy and technology issues, and we do so on a very broad scale.

But Powell explained: “We have not decided to move forward and we do not see ourselves making this decision for some time.”

“We see ourselves working in cooperation with Congress… but also with the executive, which brings expertise to many of the issues that we have to deal with here. ”

“Ultimately, we will need the approval of both the executive branch and Congress to move forward with the central bank’s digital currency,” he added, explaining:

We see this as a process that takes at least two years where we work and build public confidence in our analysis and at the end.

Noting that the Fed had not reached a decision on a digital dollar, Powell concluded: “This is where we are, we have a lot of work to do.

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