The chairman of the Federal Reserve said today that the U.S. government will have to work with private firms to improve the way money is moved around the world. Speaking via video at a Bank for International Settlement (BIS) conference in Basel, Switzerland on March 18, Jerome Powell acknowledged that the current system of cross-border payments needs to be improved and digitalized. He said: “The COVID crisis as brought into even sharper focus the need to address the limitations of our current arrangements for cross-border payments.” It has, he said, “shined a light on the less efficient areas of our current payment system and accelerated the desire for improvement and digitalization.” A key…
Fed’s Powell: 2021 ‘an important year’ for digital dollar
Federal Reserve Chairman Jerome Powell said 2021 will be a key year for the U.S. as it decides whether to create a digital currency, and what it would look like
Speaking before the House Financial Services Committee on Feb. 24, Powell said 2021 “is going to be the year that we engage with the public pretty actively” on the digital dollar project. He added that there are still significant technical challenges to be met, as well as major policy decisions to be made, before the U.S. decides to create a digital dollar.
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 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.