Jerome Powell Notes Digital Currencies and Fiat Can Coincide

by in Cryptocurrency News

Jerome Powell about digital currencies

US Federal Reserve chairman Jerome Powell stated that in the following years state-released digital currencies and CBDCs can perform side by side with fiat banknotes.

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He expressed this view during a virtual payment summit held in Basel, Switzerland.

CBDCs are powered by blockchain to reach high-speed operations and easy tracking. Powell noted that the mentioned assets play an essential role in the world’s economics. He announced that a new review from the Bank for International Settlements and a gathering of 7 central banks including the Fed studied the prospects of CBDCs in assisting federal banks to achieve their government strategy purposes.

Next, the executive informed that the Fed is partnering with specialists at the Massachusetts Institute of Technology (MIT) to implement experiments concerning CBDCs.

The first country issuing CBDC became the Bahamas. On October 20, 2020, the country introduced the first-ever nationwide CBDC in the world sand dollar. Banks all over the world are taking steps to bring out their CBDCs. In February payment giant PayPal revealed its plans to offer a "digital wallet for the world's CBDCs.