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- Federal Reserve Chairman Jerome Powell told Congress on Tuesday that he is carefully analyzing the issuance of a digital dollar.
- Powell called the potential digital dollar for a project “high priority,” according to the statement.
- The possible issuance of a digital dollar would come amid an increase in cryptocurrencies like bitcoin, which briefly exceeded $ 1 trillion in market value last week.
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Federal Reserve Chairman Jerome Powell told Congress on Tuesday that the Fed is “carefully examining” whether to issue a digital dollar.
A digital currency developed by the Fed is a “high priority project for us,” Powell told Congress, but added that there are “significant technical and political issues” related to the U.S. digital dollar.
“We are committed to solving technology problems and consulting the public in a broad and transparent manner with all interested constituents to see if we should do this,” said Powell.
As the world’s reserve currency, Powell emphasized that the United States need not be the first to issue a digital dollar, but must “get it right”.
“This is something we are investing time and work in, throughout the Federal Reserve system,” said Powell.
The change would come amid an increase in the popularity of cryptocurrencies like bitcoin and ethereum. Bitcoin briefly reached $ 1 trillion in market value last week and was traded above $ 58,000 over the weekend.