• digital dollar first-mover advantage
    People,  Regulation,  Technology

    Fed Chair: Digital dollar will have a ‘first-mover advantage’ whenever it comes

    China may be far ahead but Jerome Powell said the U.S. dollar’s role of as the world’s reserve currency gives it a lead in any central bank digital currency race

    At the Federal Reserve "we actually think we need to get this right, and we don't feel an urge or need to be first,” Powell said of a digital dollar. "We’re going to look at it very, very carefully and we’re investing heavily in understanding the technology and analyzing the policy questions—the many policy questions.”

  • New Zealand rejects CBDC
    Politics,  Regulation

    New Zealand rejects digital currency—for now

    No central bank digital currency for New Zealand, even though just 6% use cash for everyday needs

    Christian Hawkesby, the assistant governor of the Reserve Bank of New Zealand, told a conference on Oct. 19 that a central bank digital currency (CBDC) won’t be released imminently. However, he stressed the country is “well connected” on the matter and continues to monitor developments closely. In other words, New Zealand wants another country to jump in first.

  • Powell warming to digital currency
    Politics

    Fed’s Powell warming to U.S. digital currency

    Federal Reserve chairman Jerome Powell views are evolving from seeing no value in central bank digital currencies to saying it is important to get it right

    “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, given the dollar's important role globally,” Powell said during an International Monetary Fund (IMF) panel on Oct. 19. “Getting it right means that we not only look at the potential benefits of a CBDC, but also the potential risks and also recognize the important trade-offs.”

  • Deutsche Bank CBDC warning
    Cryptocurrencies,  Politics,  Technology

    Deutsche Bank issues CBDC warning

    Central bank digital currencies could unseat the dollar and ‘change the world significantly,’ said Deutsche Bank, cautioning that their adoption could have unintended consequences

    Although the German financial institution acknowledges CBDCs could make transactions easier and create greater levels of transparency, it has released a report that warns digital assets are yet to be tested broadly and in real time. Deutsche Bank is also nervous about CBDCs being issued through distributed ledger technology—stressing that such platforms have “not yet been proven as sufficiently robust for a wide-scale implementation.”