That is the demand of the people ? – Last Wednesday, the Federal Reserve released a discussion paper that sets out some of the preconditions for the launch of the digital dollar by the US central bank. The Fed seems to be really looking into the subject since Jerome Powell, Governor of the Federal Reserve, intends to discuss with the public on the possibility of a digital dollar.
Fed wants public opinion on its digital dollar
Powell offered his comments at the House of Representatives‘ Financial Services Committee hearing on Wednesday in response to questions about the concept of the digital dollar .
“It will be an important year. This will be the year in which we actively engage with the public. ”
Jerome Powell, Governor of the Federal Reserve
The Federal Reserve analysts report identifies four preconditions for the advent of a digital dollar:
the creation of clear political objectives for the currency;
the existence of a comprehensive legal framework ;
obtain broad support from stakeholders (banks, financial institutions, companies, etc.);
prepare the market for the arrival of this innovation.
Yet the Fed has no plans to present an official plan to the public . According to Powell, the political and technical questions surrounding a central bank digital currency remain . The Fed will therefore look to the public for feedback on the problems it has identified before proposing an action plan .
In the meantime, the Bitcoin Billionaire app is working on solutions to the technical challenges it has identified. It is also in talks with other central banks exploring the concept of central bank digital currency.
China leads the race for state digital currencies
The People’s Bank of China (PBoC) is currently exploring a cross-border digital currency project in collaboration with central banks in Thailand, Hong Kong and the United Arab Emirates.
At the same time, the Chinese central bank is continuing its tests on its territory. The next deadline will be a distribution of 40 million yuan ( 6 million dollars ) in the form of a lottery in a city in the southwest of the country. To participate , citizens will only have to register on a site. The PBoC, in its quest for monetary hegemony, therefore becomes the first central bank to provide for an airdrop ! China seems to be making great strides with its project with its international partners.
These advances should not reassure the United States, which is bringing the subject back to the forefront. However, it seems unlikely that public consultation is the right way to get ahead of China on the matter.