U.S. Federal Reserve Chair Jerome H. Powell made quite a statement on the future of CBDCs in the U.S. financial system. Powell made the comments on Friday at a research conference on the role of U.S. Dollar. Sponsored by the Federal Reserve Board, Washington, DC, the conference discussed the topic “International Roles of the U.S. Dollar.”
Rapid Changes In Global Monetary System
Powell said changes in the global economy could potentially impact dollar’s role in the world. In the future, rapid changes taking place in the global monetary system may affect the international role of the dollar, he said.
The Fed Chair threw some light on global adoption of a round the clock instant payments ecosystem. A majority of the big economies have already adopted or kept in the loophole the new payments mechanism. He added that the Federal Reserve’s FedNow service would be coming online in 2023.
Also, in an encouraging sign for the crypto community, Powell acknowledged the rapid growth in crypto-assets and stablecoins. He further stated that a U.S. central bank digital currency (CBDC) is also being examined for implementation.
“And in light of the tremendous growth in crypto-assets and stablecoins, the Fed is examining whether a CBDC would improve on an already safe and efficient domestic payments system. As the Fed’s white paper on this topic notes, a U.S. CBDC could also potentially help maintain the dollar’s international standing.”
