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Although the establishment of a CBDC has been approved by the National Assembly, it will take more time to establish a central bank cryptocurrency.
Federal Reserve Vice President Lael Brainard stated that the rollout and establishment of a central bank cryptocurrency (CBDC) in the United States could take five years.
Today (May 27), Vice Chairman of the Federal Reserve – Lael Brainard had a hearing with the Financial Services Committee of the US House of Representatives regarding the assessment of the risks and benefits of CBDCs. assumptions of the United States.
When asked about the progress of CBDC implementation, Ms. Brainard shared:
“If Congress decides to issue a central bank cryptocurrency, it could take up to five years to establish the necessary security features.”
According to Ms. Brainard, the establishment of a CBDC will be more about the future of the financial system than meeting the current needs of the United States. She shared that creating a CBDC will certainly have risks, but there will also be certain benefits.
One of the risks when establishing a CBDC can be taken as an example of a stablecoin, as it gradually becomes a popular cryptocurrency in the US. Add to that the risk of creating “fragmentation of the payment system.”
Brainard Lael also expressed concern about whether other central banks in Europe or China will launch similar products. That will affect the position of the US dollar. According to a report by the House Committee on Financial Services, more than 85% of the world’s central banks are conducting CBDC research.
To proceed with the design and implementation of a CBDC, the Fed will need approval from Congress and the White House.
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