Federal Reserve Chair Jerome Powell Talks About Demand Of Central Bank Digital Currencies
The chair of the U. S. central bank (Fed), Jerome Powell, recently spoke about some of the hottest crypto subjects during a forum sponsored by the Swiss Institute of International Studies.
During his presentation, he was asked whether central banks should issue their own centrally-backed cryptos and if they were losing an opportunity for not doing it. Powell answered that the U. S. central bank is not considering this at the moment, just like many other central banks.
According to him, one of the main issues of creating a digital version of the dollar is that it would have to be incredibly secure. It is bad enough that paper money can be counterfeit, so if someone can do it with digital money, it can be even worse. With a proper hack, someone could print as much money as they wanted, so it is hard to really create a project like this one.
This is the main reason why the Fed is not really trying. It is simply a huge effort. Also, he acknowledges that the demand for this simply does not exist yet. The consumers are absolutely not clamoring for a central bank-backed cryptocurrency.
He also spoke about Facebook’s Libra during the forum, affirming that it could become very important very quickly because Facebook simply has a huge user base. In order for something so powerful to exist, it would need to be heavily regulated and supervised constantly. Facebook will not get away with doing whatever it wants with it.