Two members of the US House of Representatives Financial Services Committee invited the Federal Reserve to consider issuing a digital dollar.
French Hill and Bill Foster directed letter to the Fed chairman, in which they express their concerns about potential threats to the dollar associated with the release of a widely used cryptocurrency by another country or a private company, and are interested in the Central Bank’s plans to create its own analogue.
In the text, lawmakers indicate that the Fed has the ability and rights to launch a national digital currency in order to avoid losing the dominant status of the dollar in the long term..
They also noted that according to a study by the Bank for International Settlements, currently more than 40 countries are studying the issue of creating a CBDC..
In addition, in August, Bank of England Governor Mark Carney proposed using a single digital currency controlled by central banks as a reserve currency instead of the US dollar..
French Hill and Bill Foster also wrote that although cryptocurrencies are now used mainly for speculative purposes, in the future they will be able to increasingly function as paper money, displacing them. Therefore, the Federal Reserve maybe you need develop a digital dollar.
Congressmen’s fears are not unfounded.
Besides China, the EU is also discussing the launch of global digital currency.
Fed Chair Jerome Powell says Federal Reserve is researching digital currency
text: Ivan Malichenko, photo: Shutterstock