Washington, D.C. – Jerome Powell, Chairman of the Federal Reserve (The Fed), on Saturday (17/2) revealed the US central bank's plans to issue a digital dollar and regulate stablecoins.
In a meeting with members of the US Congress, Powell said that the Fed was conducting research and development for a digital dollar, which would be a digital currency issued by the central bank.
“We want to ensure that the United States is at the forefront of payments innovation,” Powell said. “A digital dollar can provide a faster, safer and more efficient way to pay for Americans.”
Powell also emphasized the importance of a regulatory framework for stablecoins, which are digital currencies pegged to the value of another asset, such as the US dollar.
“Stablecoins have the potential to improve the efficiency of the financial system,” Powell said. “However, it is important to ensure that stablecoins are regulated in a way that protects consumers and maintains financial stability.”
Powell's announcement is a significant step in the development of digital currency and stablecoin regulation in the US. The Fed will likely publish a discussion paper on the digital dollar in the coming months.
Courtesy: The Fed, CNBC, CoinDesk.
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