US Federal Reserve Examining Digital Dollar Currency

US Federal Reserve Examining Digital Dollar Currency

By Abhimanyu Krishnan | News | 14 Aug 2020

United States Federal Reserve Board Governor Lael Brainard on August 13 said that the central bank was experimenting with distributed ledger technology (DLT) and looking into the possibility of a digital dollar.

  • In a speech titled “An update on digital currencies”, Brainard spoke of the potential impact a DLT could have on the US economy
  • Governor says that the Federal Reserve is “active in conducting research and experimentation” and is looking into potential use cases
  • Notes the COVID-19 pandemic as being challenging for people who need the cash urgently, as indicated by spending patterns upon receiving stimulus cheques 
  • A digital dollar would make wide scale distribution a much easier prospect
  • Believes that there are opportunities, but risks as well, naming privacy, illicit activity, and financial stability as challenges
  • Points to Bitcoin (BTC) and Libra with respect to raising questions about regulation and the role of currency
  • Other American financial authorities have also commented on a digital dollar, with former CFTC Chairman Christopher Giancarlo now leading the digital dollar project

Abhimanyu Krishnan
Abhimanyu Krishnan

Technophile, cryptocurrency enthusiast and journalist.


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