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Will the Fed Issue a Digital Currency?

“It’s more important for the United States to get it right than to be first,” says Chairman Powell.

By Craig Torres | October 26, 2020 at 01:31 PM
Stock photo: Jerome Powell

Federal Reserve Chair Jerome Powell said the central bank hasn’t made a decision to issue a digital currency, citing the need for further work and “extensive” public consultation with stakeholders before doing so.

“It’s more important for the United States to get it right than to be first,” Powell said last week, as part of a panel hosted by the International Monetary Fund (IMF) during its annual meeting. “We are committed to carefully and thoughtfully evaluating the potential costs and benefits of a central bank digital currency [CBDC] for the U.S. economy and payments system. We have not made a decision to issue a CBDC.”

Fed officials have swerved sharply from their previously cautious approach to digital currencies, embracing a full-scale study on whether one might be suitable for the United States. Powell said about 80 percent of central banks around the world are exploring the idea.

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