According to reports, the Federal Reserve is open to a collaboration with the private sector for a possible launch of a digital dollar in the U.S. However, it was noted the central bank has not committed to an actual launch.
While speaking on an International Monetary Fund panel, Federal Reserve chairman Jerome Powell revealed the news. Powell said, “We will have lots of conversations with industry and stakeholder engagement, and that’ll help us in our work on digital currencies and cross-border payments. Powell did point out the issues the Federal Reserve will face with the possible implementation of a digital dollar, noting cyber attacks and illicit activities were among the concerns. He said, “I actually do think this is one of those issues where it’s more important for the United States to get it right than it is to be first.”
Powell talked about the impact of the U.S. dollar on the global economy, saying a bulk of the $2 trillion Federal Reserve notes currently being circulated are being held outside the states. Along with that, Powell said the digital dollar is not a replacement to the actual dollar, only a “compliment.”