The United States will not release a digital dollar until the Federal Reserve has resolved all issues surrounding a potential central bank digital currency, or CBDC, according to Federal Reserve Chairman Jerome Powell.

Powell argued that he is not worried that other countries have an advantage for the first time when it comes to issuing primary digital currencies for goods.

Powell said at a meeting of the International Monetary Fund on cross-border payments on Monday:

“We have not yet made a decision on adopting CBD and we believe there is a lot of work that cannot be done. […] In fact, I really think CBD is one of the issues that the United States is more than important to understanding. This is right than being the first. ”
Powell explained that “that’s right” means that the United States is considering not only the potential benefits of central bank digital currencies, but also the potential risks, especially given that the US dollar is the world’s reserve currency.

The official indicated that countries around the world will have their own motives for issuing digital currency for the central bank. He argued that the focus of the United States will be on determining whether a central bank’s digital currency can improve a truly dynamic and secure domestic payment system, and how to do it. Powell continued:

“Unlike some jurisdictions, here in the United States we continue to see strong demand for cash. Moreover, we have a strong and mature financial and banking sector, and we have a large population with high quality banking services, so a lot of people, not all of them. They already have access to the electronic payment system. ”
The Fed chairman stressed that the bank will not make a decision to issue a digital dollar until the risks associated with the CBDC currency, including cyber attacks, financial stability, privacy and security, are addressed. He said:

“In addition to assessing the benefits, there are still some rather complex political and operational issues. […] To name a few, I would like to mention the need to protect CBD from cyberattacks and fraud; How CBD Will Affect Monetary Policy Economic stability; and how CBD can prevent illegal activity while protecting users’ privacy and safety. ”
Powell’s comments come from a number of global jurisdictions that study and regulate the CBD. Countries like Russia and Japan are some of the latest to join the CBDC, while jurisdictions like China and Sweden are starting to test their next digital currencies in 2020.

Despite the growing popularity of the technology around the world, US residents are also skeptical about the digital dollar. According to a recent poll, more than 50% of Americans oppose the release of such assets by the US Federal Reserve. In late September, the Cleveland Federal Reserve disclosed details of the Federal Reserve’s ongoing research into a potential digital dollar.

Source: CoinTelegraph