- Reiterates that the Federal Reserve’s investigation into the digital currency will take some time
- Fed is deliberating on the idea of a digital currency
- The Fed chief participates in a panel discussion at the Banque de France conference
The Chair of the Federal Reserve, Jerome Powell, stated that the fact that the industry’s shakeout did not result in broader financial turmoil may not be the case in the future.
In reference to decentralized finance, Powell stated Tuesday during a panel discussion on digital finance hosted by the Banque de France that global interest rate increases had revealed significant structural issues in the DeFi ecosystem.
Federal Reserve is looking closely at the potential costs
The good news, is that, from a financial stability standpoint, the interaction between the DeFi ecosystem and the conventional financial system and banking system is not particularly significant at this point.
Powell stated once more that the Fed is still considering the idea of a digital currency and does not anticipate making a decision on it immediately.
According to Federal Reserve Chairman Jerome Powell, the United States central bank is contemplating the possibility of issuing a digital currency with a very broad scope.
He mentioned that the Federal Reserve is working with Congress and the executive branch to decide whether to issue a digital currency for the central bank.
ALSO READ: There’s ‘Real Need’ for Better Crypto Regulation
Regulators evaluating both the policy & technology issues
During a panel discussion on digital finance hosted by Banque of France on Tuesday, Federal Reserve Chairman Jerome Powell provided an update on the central bank’s digital dollar work.
The United States is not experiencing a cash shortage. He stated that they still use cash quite a lot. The central banker, on the other hand, remarked: Not in absolute terms, but in comparison to non-cash payments, it is decreasing.
Powell stated that the Federal Reserve is closely examining “the potential costs and benefits” of issuing a CBDC in the United States.
Source: https://www.thecoinrepublic.com/2022/09/29/there-is-real-need-for-improved-crypto-regulation-powell/