Jerome Powell said the central bank will likely contact the public and lawmakers about the digital dollar in 2021.
Powell answered his representative’s questions at a House Financial Services Committee hearing. Patrick McHenry, who said that the digital dollar is likely to face US national security and economic challenges. Powell said the project raises a lot of concerns and that the Fed intends to reach the public.
“We will be active this year in engaging the public, including some of the public events that we are working with,” he said. “Meanwhile, we are working on technical issues and are also cooperating and sharing our work with other central banks around the world that are doing this.”
Powell added that the Fed needs to assess the health of other markets when creating the digital dollar, adding that the project may need to pass it on to lawmakers first:
We might need legislative powers for something like this. It is not clear until we see which direction we are heading in. ”
The Fed chief’s comments came after his appearance before the Senate Banking Committee yesterday, where he said the Fed was “taking a hard look” at whether the US should introduce the digital dollar, but also unlikely for coins and digital currencies. Currencies to influence the transmission of monetary policy. Powell previously stated that “it is imperative that the Federal Reserve focus on developing a digital currency.”
Meanwhile, the Federal Reserve today faces another technical challenge, as almost all services it provides through its online portal have been closed for more than an hour. At the time of publication, all Federal Reserve Bank services, except for the Account Service, are online again.