Fed chief suggests Congress get involved in digital dollar effort

October 8, 2021

Fed chief suggests Congress get involved in digital dollar effort

The Federal Reserve (Fed) needs the support of the US Congress to create a digital dollar. This was stated by its chairman Jerome Powell.

Speaking to the Senate Banking Committee, the official said the Fed's regulatory laws could be the basis for the issuance of the CBDC, but launching the process by Congress would be a better option.

"This is such a fundamental issue that broad consultation and authorisation by Congress would be optimal," Powell said.

As a reminder, it was previously reported that staff at the Federal Reserve Bank of Boston and the Massachusetts Institute of Technology will complete work on a digital dollar prototype by July. The Fed began similar experiments in February 2020.

Earlier, Jerome Powell noted that it was important for the US not to be the first to issue a CBDC, but to do so with the right approach. Following a meeting in September, he announced the release of a report on the digital dollar "in the near future".

In August, Fed Governing Council member Chris Waller questioned the feasibility of issuing a CBDC. A similar view was expressed by his colleague Randal Quarles.

Prior to that, US congressmen were concerned about lagging behind China in developing a national digital currency.

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Hi there, my name is Zalman Weinberg. I'm enthusiast with over 7 years of experience in cryptocurrencies and blockchain. Professional Trader providing Blockchain solutions to Startups and Enterprises. Expert in all cryptocurrency exchange APIs (BitMEX, Bittrex, Binance, Bitfinex, Kraken, Poloniex, Gdax etc.). I have also worked with multiple Forex broker APIs.

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