Page 17 - Digital Dollar News Today

Following the long-awaited Fed discussion paper about the pros and cons of a potential U.S. central bank digital currency (CBDC) on Jan. 20, Bank of America economic analysts said they anticipate a...

WASHINGTON (Reuters) — While the Federal Reserves paper on potentially adopting a central bank digital currency or CBDC will advance debate in Washington, its decision to kick the issue to

A Fed-backed digital dollar would allow for fast and secure transfers without a third party or the wild price swings seen with cryptocurrencies.

The 40-page report says it is "the first step" in creating a discussion with the public about the potential introduction of a central bank digital currency.

The Fed said the report wasn't intended to indicate "any imminent decisions about the appropriateness of issuing a U.S. CBDC."

Despite bitcoin's recent plunge, it's not a paragon of the crypto industry, with the federal government looking to hop on board the hype train.

The chairman for the Federal Reserve has said when the highly anticipated report on crypto will be released. Its ready to go.

Federal Reserve Chair Jerome Powell told Senate lawmakers on Jan. 11 that there's nothing standing in the way for privately issued stablecoins to co-exist alongside a potential central bank digital currency.

President Biden recently announced the nomination of Jerome Powell to continue leading the Federal Reserve.

The introduction of a digital U.S. dollar could help democratize banking in poorer countries, but it also poses a risk to local currencies if it were readily accessible, according to former Indian central bank Governor Raghuram Rajan.