US Treasury Secretary Janet Yellen has expressed her views on the potential of the digital dollar, but she is reluctant to draw any conclusions at this point on the issue. Yellen said Thursday that she has no opinion on whether the Federal Reserve should create a digital version of the dollar, but that such a move would require broad consensus among Congress, the US Federal Reserve and the White House.
This comes on the heels of recent reports that the Federal Reserve is currently investigating whether an electronic version of the dollar would be beneficial. Yellen said she sees the pros and cons of the digital dollar. Although she has ideas about implementation, she believes more research is needed before she can come up with any clear answers.
Yellen said that the benefits of a central bank digital currency require further study, including the impact on banking institutions.
In contrast, Federal Reserve Governor Lyle Brainard, the US Federal Reserve’s vice-chair-elect, has called for the urgent introduction of a digital dollar. She suggested that she could only have such a currency when China and other countries developed their own central bank digital currencies, which she sees as a race to the top.
On the topic: Now or never – the United States should prepare for digital currency
According to the Fed Secretary, it is necessary to reach a consensus before proceeding. Yellen said the Fed is working on an investigation into the issue and that it will be available soon, and they know that a broad agreement must be reached between the authorities before they can move forward.
This is an important decision that requires unanimity. There are some benefits, but there are also significant costs. ”
As Cointelegraph reported in September, Federal Reserve Chairman Jerome Powell said the central bank does not need to rush through plans for a digital currency. While many central banks have created digital currencies for their own central banks, Powell said the Fed is in no hurry to accept the move.