The US Federal Reserve is carefully studying the issue of creating an electronic dollar. Still, it should be done in such a way as to avoid negative consequences for the banking system, US Federal Reserve Chairman Jerome Powell said on Tuesday.
“We are very carefully studying the issue of whether to introduce an electronic dollar. This is a question that the world’s central banks are considering… There are significant technical and regulatory issues about how to do this,”he said, speaking to the Senate Banking Committee.
The Fed, Powell assured, intends to address related technical issues and consult widely with the public on the feasibility of introducing an electronic dollar in general.
“I would also say that we are the reserve currency of the world, and we have a responsibility to do it right. We don’t have to be the first; we have to do it right. But this is what we invest time and labor in, “he said.
According to him, in this process, it is necessary to avoid creating something that can play a destabilizing role or take money out of the banking system. Overall, however, Powell described it as a “high-priority project.”