Summary:<\/p>\n
The US Federal Reserve Chairman, Jerome Powell<\/a>, has said that the central bank is looking into recommending to Congress how to go about launching a Central Bank Digital Currency (CBDC).<\/p>\n Chairman Powell shared his insights into a potential CBDC<\/a> in the United States during a presentation<\/a> of the Semiannual Monetary Policy Report, and the State of the Economy to the House Financial Services Committee held earlier today.<\/p>\n In his presentation, Chairman Powell stated that a Central Bank Digital Currency was something the United States needed to explore as a country and should not be a partisan issue. He added:<\/p>\n It’s a very important potential financial innovation that will affect all Americans. Our plan is to work on both the policy side and the technological side in coming years and come to Congress with a recommendation at some point.<\/p><\/blockquote>\n Chairman Powell’s statement on the United States needing to explore a Central Bank Digital Currency as a country echoes similar remarks he made last week, whereby he emphasized the significance of the US dollar remaining the dominant global currency.<\/p>\n He shared his insights on the importance of a dominant US dollar during a speech<\/a> at a research conference in Washington DC on\u00a0 ‘International Roles of the US Dollar.’ He started by stating that the US Dollar had been at the center of the international financial and monetary system since World War II. The US Dollar has since become the world’s reserve currency and the most widely used currency for payments and investments.<\/p>\n In addition, Chairman Powell forecasted that a Central Bank Digital Currency would help maintain the dollar’s international standing. He said:<\/p>\nA Central Bank Digital Currency Will Help Maintain the US Dollar’s, International Standing.<\/h2>\n