Board of Governors of the Federal Reserve System (FRB) Chairman Jerome Powell said at a press conference yesterday that there was no need to rush to introduce the Central Bank Digital Currency (CBDC), CNBC and others reported on Thursday.
According to the chair, the Fed acknowledges the need to introduce a Digital Dollar but has yet to set concrete evaluation criteria.
At a post-meeting news conference on Thursday, Powell stated that the Fed is planning to publish a paper highlighting the benefits of the digital dollar. They had initially planned to submit a paper in May but got delayed.
“I think it’s important that we get to a place where we can make an informed decision about this and do so expeditiously. I don’t think we’re behind. I think it’s more important to do this right than to do it fast.”
Several central banks across the world have already announced that they are planning to introduce their own CBDC, but Chair Powell reiterated that the Fed has no intention of joining the trend in a hurry.
Powell said it was more important to start using the CBDC correctly than speedily, and that the United States has not been lagging in CBDC innovation.
“We think it’s really important that the central bank maintain a stable currency and payments system for the public’s benefit. That’s one of our jobs,” Powell added.
However, many analysts believe that the Fed’s lack of aggressiveness on the matter could challenge the global position of the US Dollar.