Federal Reserve spokesman Jerome Powell said the central bank is likely to engage with the public and legislators on the digital dollar by 2021.
Powell answered questions from spokesman Patrick McHenry at a hearing in the House Financial Services Committee today, which said the digital dollar is likely to meet US national security and economic challenges. Powell said the project raises many concerns and that the Fed intends to reach out to the public.
He said: “We will be very active with the audience this year, including some of the community events we are working on.” “In the meantime, we work on technical issues and collaborate and share our work with other central banks around the world that do.”
Powell added that the Fed needs to assess the state of other markets when creating the digital dollar, and added that the project may first need to be transferred to lawmakers:
To do this we may need legal permission. It is not clear until we see which way we are going. ”
The Fed chairman’s comments followed his appearance before the Senate Banking Committee yesterday, where he said that the Fed “closely monitors” whether the US should introduce a digital dollar, but also that it is unlikely to be stable and digital. currency. Currencies affect the transmission of monetary policy. Powell said earlier that it is “important that the Federal Reserve focuses on developing the digital currency.”
Meanwhile, the Federal Reserve today faced another technical challenge, having been disconnected from almost all the services it provided via its online portal for more than an hour. At the time of publication, all Federal Reserve Bank services, except for account services, are now back online.