TL; DR Breakdown
- Janet Yellen calls for agreement in digital dollar creation
- Yellen wants to weigh the potential
- Fed Reserve is still making research
Creating and developing a central bank digital currency have become a topic of great importance among countries worldwide. Although some are still putting in the work in creation, others are across the finish line. With China still firmly in the lead in terms of top countries, the United States has also been looking into creating a digital dollar. Regarding creating a digital dollar, Janet Yellen, the secretary of the United States Treasury, has said that all participants must agree.
Yellen wants to weigh the potential of a digital dollar
Giving insight into her statement, Yellen mentioned that even though she has no idea about creating a digital currency, all the parties involved must come to a consensus. Notably, the secretary wants the United States central bank, the White House, and the congress to work together if they are to make any headway. This statement is coming off the back of a recent report citing that the federal reserve is looking into the feasibility of creating a digital dollar and its impact on the economy.
Yellen also mentioned that although she does not know how the developers would go, digital currency would have advantages and disadvantages. However, she feels that like every new thing, great research must be carried out to determine how beneficial it would be to the economy in years to come. Yellen notes that even though researchers would come up with obvious advantages of the digital dollar, she believes that there could be a bad rebound on financial institutions in the country.
Fed Reserve is still making researches
Opposing Janet Yellen, Governor of the federal reserve, Lael Brainard has said that the country must act swiftly to create its digital version of the dollar. Brainard is one of the top picks to become the vice-chairman of the United States Central bank after being handpicked by President Joe Biden. In her opinion, the United States cannot afford to lose a race to the top, citing the creation of a digital currency by countries worldwide, including China.
To back her claim of consensus, Yellen noted that the federal reserve is currently making research into the issue and would release a report soon. However, she noted that the federal reserve is aware that they must first consult with other parties involved before deciding. Previously, Jerome Powell, the chairman of the federal reserve, pointed out that there was no need to hurry up the creation of a digital currency. Despite most countries researching, testing, and debuting their CBDC, the fed chair believes that the United States is not in a rush.