Fed Chair Powell: "Cannot Conclude if Digital Dollar Aligns with Public Interest"

[Image source=AFP Yonhap News]

[Asia Economy Reporter Byunghee Park] Jerome Powell, Chairman of the U.S. Federal Reserve (Fed) (photo), stated that he has not yet reached a conclusion on whether the introduction of a digital dollar aligns with the public interest.

According to Bloomberg on the 11th, Chairman Powell said this during CBS's '60 Minutes' broadcast that day. However, Powell explained, "The digital dollar research project is very large and complex," and "the Fed is conducting extensive research."

As the cryptocurrency market, centered on Bitcoin, has grown recently, interest in digital currencies issued by central banks around the world is also increasing. Countries such as China and Sweden are testing the introduction of digital currencies. In particular, China is actively promoting the introduction of the digital yuan to increase the yuan's influence in the global financial market.

Some analysts suggest that China is rushing the introduction of the digital yuan to counter the U.S. dollar, the global reserve currency. Alongside this, there are analyses that cryptocurrencies like Bitcoin could weaken the dollar's status as the global reserve currency. In response, voices in the U.S. are growing louder, urging the country to hasten the introduction of a digital dollar to adapt to the new market environment.

However, Chairman Powell expressed a cautious stance, saying that the U.S. does not need to be the first to introduce digital currency. He emphasized that introducing a new currency requires congressional approval and reiterated that a decision has not been made on whether the digital dollar serves the public interest.

He added, "We need to answer this question well," and said, "Since the introduction of a digital dollar is an important process, if the Fed introduces a digital dollar, the public and Congress must be deeply involved in the process."

This content was produced with the assistance of AI translation services.