The development of the crypto currency Bitcoin has attracted attention ranging from the people to government institutions. Previously, the United States was among the countries that loudly criticized and commented on crypto currencies.
However, ahead of Joe Biden's coronation as New President, the government's tone towards crypto currency has changed little. Jerome Powell, head of the US Federal Reserve (Fed) yesterday suggested that the U.S. administration not be in a hurry to issue central bank crypto currency (CDBC).
He argues that, the US dollar is the world's reserve currency and this gives the U.S. an advantage. No matter which country comes first, the U.S. will still be the main mover.
In addition, Powell claims that there are past benefits and costs in CBDC publications. He said the Fed would issue a CDBC if there was a need from stakeholders in the financial sector for crypto currencies. Also, the extent to which the CBDC currency will help the industry will be a consideration.
Powell stressed that the Fed is more likely to issue the CDBC regularly and accurately than in a hurry but there are many loopholes.
For example, Powell seems to be signaling that cypto's growing popularity has prompted the Fed to intervene.
