WSJ: Fed launches review of central bank digital currencies

According to the Wall Street Journal (WSJ), the U.S. Federal Reserve began reviewing the benefits and risks of publishing the U.S. numerical advantages on Thursday. Fed officials are split on this issue, so they won't be able to decide whether to create a digital currency anytime soon.

"We look forward to working with the public, elected officials, and many stakeholders to learn the pros and cons of the U.S. central bank's numerical advantages," Fed Chairman Jerome Powell said in the quote.

Proponents say the Fed's digital cash can move money through the financial system faster and cheaper and provide a better way for the government to allocate financial support.

Fed Chairman Lael Brainard told the National Association of Unions in September that it was pursuing another major policy to determine the use of digital benefits for payments at home and around the world.

But Powell said there were reasons to be cautious. He said last year that it was more important to use digital currency correctly to enter the market first. Partly because the dollar plays an important role in the world.

He and other Fed officials said the Fed's research was still in its infancy and under investigation. He said at a press conference on September 22 last year that he would only decide to announce the name of the digital credit bank (CBDC) if he thought "the benefits are obvious and see greater costs and risks".

Powell also pointed to other issues that many Americans use frequently and prefer to use cash. He also said personal issues needed to be resolved.

Other officials said they were more skeptical of the need for the Fed's numerical benefits. Former Fed Chairman Randall Qualres, who left the Fed last month, said the US dollar went "digitalized" last summer, asking if the Fed's CBDC could help banks fail , to enter finance or reduce the cost of financial services. This goal can be achieved by other means, he said.

A report from the Federal Reserve of Philadelphia warns that the Federal Reserve CBDC could lead to financial insecurity in times of crisis when people withdraw money from banks, joint ventures, joint ventures and other investments.

In theory, the Federal Reserve can use digital cash with traditional banknotes, but more details on how people get digital cash and how they spend it in times of financial uncertainty.

For example, the Fed must decide whether consumers will have access to digital currency through bank accounts or through commercial loans.

Some commentators have suggested that CBDCs could help streamline monetary policy by allowing central banks to alter the value of CBDCs in cash. This allows central banks to ride through the most volatile financial markets and take monetary policy to the next level.

The Fed report comes as central banks around the world compete with the rise of multiple personal exchanges for traditional benefits and consider developing their own versions. The placement of digital assets is changing rapidly and in many cases is associated with crime. So far, they have not been widely used in daily activities such as grocery shopping or movie tickets.

China had established its own major digital currency platform earlier this year and recently banned the trading of cryptocurrencies by securities regulators such as Bitcoin, Ethereum and Tether. . Meanwhile, El Salvador became the first country in the world to accept Bitcoin as its national currency along with the US dollar.

Biden executives decide on a business venture similar to that of cryptocurrency companies struggling with a stablecoin. Some police officers fear that the money will lead to financial problems and require stricter checks.

President Powell said earlier this month that digital money can compete with personal money.