Jerome Powell, the chairman of Federal Reserve during an event hosted by the Swiss Institute of International Studies which was held at the University of Zurich, Switzerland spoke about central bank digital currencies. The digital currency the fed chairman was talking about in the event was indicative to the central bank digital currency and Libra, a Facebook’s own digital currency. The central bank is keeping a close watch on the development surrounding the whole environment concerning the topics around the digital currency Bitcoin but went out clearly to state that the bank is not actively considering the introduction of digital currency as imminent but there was a possibility.
The reporter got the reply when confronting the US Federal Reserve chairman with the plan to establish digital currency. The Federal Reserve chairman went to discuss the benefit a new form of currency had over the traditional form of currency. He said that the counterfeit of the more traditional currency was much easier and convenient than the new type which would require high technical expertise to hack or cause manipulation in the currency system that is centralized. Cyber issues are the field he specifically mentioned will be the difficult part of counterfeiting. Consumers have plenty of payment options and there is not like demand for it but the bank is not completely against the case as the bank has noticed a trend that is unconventional in the approach. As the bank report said the people are investing in digital currency so there lay a room of financial innovation.
When asked about facebook’s digital currency Libra which has made headlines which is a community of over billion people spread across the world, he said that though the current regulation will make it difficult for the implementation but will be a slow and carefully well thought out road for implementation.
Source: Crypto Globe
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