Central bank digital currency being weighed up by the US Federal Reserve
- The US central bank is now exploring the possibility of issuing a central bank digital currency (CBDC).
- Federal Reserve Chair Jerome Powell, replied to US representatives when questioned on any to launch a digital currency.
Chairman of the Federal Reserve Board, Jerome Powell, was questioned by US representatives French Hill and Bill Fosters, who were asking the Fed chair on the possibility of the central bank launching a digital currency.
He notes that at present it is not developing a CBDC, however, it has explored and continues to study the feasibility of such a project.
Powell further explained that the Federal Reserve is researching as well as experimenting to gain a more clear understanding of such projects. Noting that the experiments been conducted are very small, but they would assist in understanding the issues faced by central bank digital currencies, as well as the risks that come with them.
Author
Ken Chigbo
Independent Analyst
Ken has over 8 years exposure to the financial markets. He started his career as an analyst, covering a variety of asset classes; forex, fixed income, commodities and equities.
