New horizon? We do know that the Federal Reserve is actively working on a central bank digital currency, also known as a CBDC, but there is now intel that some prototypes are near completion.
This has been confirmed by Federal Reserve Chairman Jerome Powell last week, speaking as part of a digital event held by the Bank for International Settlements (BIS) on central bank digital innovation.
He said that the US central bank is actively exploring the launch of a digital dollar, and at least two prototypes are near completion. These are developed by officials at the two abovementioned organizations.
James Cunha, who leads the project for the Boston Fed:
“The Boston Fed and MIT hope to unveil some of their work in the third quarter, including at least two prototype software platforms that could move, store and settle transactions made with digital dollars.”
Cunha explained that once these prototypes are released, others will be able to see and build on the code.
But there are major issues that the central bank, the Treasury, and Congress must address regarding the digital dollar. These include concerns like whether the Fed should host customer accounts itself, whether to allow anonymity, and what protections consumers would have in case of a cyberattack.
Or even an erroneous transaction.
Jerome Powell has been on record saying that the central bank would fully adopt a digital dollar only with the support of the nation’s elected leaders. That said, the digital dollar is a very high priority project for the Fed.
The information provided on this website does not constitute investment advice, financial advice, trading advice, or any other sort of advice and you should not treat any of the website's content as such. Crypteligence.com does not recommend that any cryptocurrency should be bought, sold, or held by you. Do conduct your own due diligence and consult your financial advisor before making any investment decisions.