Federal Reserve Chair Jerome Powell says the U.S. should get digital currency right, not only looking at the potential benefits, but also risks and important trade-offs, according to Reuters. Policy and operational questions involve protecting CBDC from cyber attacks, counterfeiting and fraud, monetary and financial stability, and prevention of illicit activity while preserving user privacy and security.
- World’s largest central banks and smaller ones reflecting on the idea of issuing digital currencies.
- Central banks are focusing on the idea of issuing a digital currency in fear of losing control to private currencies such as Facebook, which have announced plans to create their own virtual tokens
- Although Fed has not decided on issuing digital currency, it is an active participant in research partnering with other central banks and Bank for International Settlement
- China is leading major economies in digital currency experimentation and has publicly stated it will issue it to reduce dependence on the global dollar payment system.
Bitcoin is gaining. BTCUSD is up 1.24%