Many people expect that the time may soon come when the digital currencies of the central bank or CBDC will once and for all replace physical dollars. However, comments from US Federal Reserve Chairman Jerome Powell suggest that this may not be the case.
The chairman’s comments were filmed and later presented at Thursday’s event in Switzerland, according to to the article from Bloomberg. The event was attended by the Committee on Payments and Market Infrastructures. In his speech, Powell mentioned the US Federal Reserve and six other central banks, which together produced the report in connection with the Bank for International Settlements or the BIS. The report considered the viability of the CBDC in relation to government targets.
Powell added, according to Bloomberg:
“In the context of today’s topic, one of the three key principles highlighted in the report is that the CBDC must coexist with cash and other types of money in a flexible and innovative payment system.”
Overall, countries have approached the CBDC differently. Some nations, such as China, do raced towards the creation of the CBDC. Bahamas introduced its CBDC in the autumn of 2020. However, the US ran a slower train, prioritizing quality over speed, though Powell comments in early 2021 emphasized the ultimate importance of the CBDC.
In his recent comments, according to reports by Bloomberg, Powell explained:
“The Covid crisis has brought an even sharper focus on the need to address the constraints of our current cross-border payment arrangements […] And as this conference sufficiently shows, despite last year’s challenges, we have still been able to make important progress. “
COVID-19 has stimulated a number of economic changes since the adoption of preventive measures in March 2020. Just over a year ago Bitcoin fell below $ 4,000. The asset has since risen to more than $ 60,000.