Federal Reserve Research Gives No Answers About Creating a Digital Dollar

Don’t expect the US Federal Reserve issue digital dollar anytime soon. CNBC report The reserve has published Its long research on central bank cryptocurrencies, but no take on whether it should pursue the technology. Instead, the article explored the potential benefits and pitfalls of digital currencies, and solicited public input.

Fed warns that current cryptocurrencies tend to very volatile, consume Lots of energy and often have significant transaction limits. A central bank-backed format could overcome some of those problems by acting as a “bridge” between payment services, making finance more inclusive, the Reserve said. and provide “safe and reliable” money. The Reserve also believes that digital currencies can improve cross-border payments and protect the role of the US dollar on the world stage.

However, the government also warned that the official digital cash will need to take into account possible changes to the financial world, such as encouraging more activity for financial companies. . It will also need to maintain privacy, protect against crimes like fraud, and be resilient. The reserve has introduced the ability to have offline capabilities to allow transactions when internet access is not available, such as during natural disasters.

The agency emphasized their report is a “first step” in discussing the possibility of a central bank cryptocurrency and that it will be available to the public until May 20, 2022. Feedback and answer questions. For now, however, the Reserve will remain neutral and will only operate on a digital currency if long-term research supports the concept. It resists pressure to act quickly, even when other countries moved forward.

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