The Federal Reserve and Massachusetts Institute of Technology are about to begin research on CBDC creation.
Despite massive moves from countries around the world regarding creating a Central Bank Digital Currency (CBDC), the United States of America has remained unmoved in that aspect.
The White House has been silent over the possibility of looking into the prospects of a CBDC creation, yet MIT and Boston Fed have planned to team up to start researching on CBDC creation.
Giving a credible insight into the news, the Governor of the Federal Reserve Bank, Lael Brainard has said it would partner up with MIT to look into the prospects of developing the CBDC in the coming years.
Boston Fed and MIT set to begin research into CBDC creation
While speaking at the bank’s headquarters, the Governor said regulators in the country need to start waking up to the realities of the world and start looking at the potential digital assets possess.
Looking at the other beneficial aspects of digital money, Brainard said if the research on CBDC creation is successful, it will provide privacy protection for clients amongst other things. Finally, the Governor said while the bank was working on the creation of the CBDC, the regulators should know of the benefits the creation of CBDC possesses.
China Yuan might create problems for the digital dollar
The Governor of the bank has further raised concerns concerning Facebook’s Libra project and China’s CBDC as she talked about its regulatory status. Brainard says since the US is regarded as the superpower, it should create a digital currency that will mirror the dollar.
Brainard says investors would be able to use the digital dollar like every other digital asset since they would provide the same uses. This new research on CBDC creation might be the best thing in the US when it eventually gets developed, but China might have stolen the headline.