The President and CEO of the Federal Reserve Bank of Cleveland revealed the details of the Federal Reserve's ongoing research into a potential digital dollar.
In her speech as the keynote speaker on Wednesday, Loretta Meester confirmed that the Federal Reserve had been exploring CBDCs since before the pandemic.
Meester noted, according to Queen Telegraph, that her Board of Governors was building and testing a range of distributed ledger platforms in order to understand the potential benefits and trade-offs.
She also cited initiatives from regional Federal Reserve chapters, including a multi-year partnership between MIT and the Boston Federal Reserve, as well as collaboration between the Federal Reserve branch. The Federal Reserve Bank of New York and the Bank for International Settlements.
Despite ongoing research, Meester emphasized that the initiatives do not indicate any decision by the Federal Reserve to adopt such a currency, adding that issues related to financial stability, Market structure, security, privacy, and monetary policy all need to be better understood.
She noted that the Covid pandemic has led to major disruptions in the vital infrastructure of the United States, such as the payments sector, and has led to major changes in the patterns and volume of domestic remittances.
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where Meester said: The spread of (Covid-19) has increased the dependence of companies and individuals on digital services and faster communication, as many employees start working from home and consumers have shifted. To online shopping:
Looking ahead, Meester stressed the importance of making the necessary investments to ensure that the US payment system remains resilient in the face of extreme stress events that should remain a priority.
(Amazon Fun Knowledge)
