The Federal Reserve is daily beginning to show significant interest in the crypto market. On Monday, Fed Governor Lael Brainard noted that The Fed is intensifying their research and efforts to explore the potential for expansion of the digital version of the U.S. dollar.
Among others, the Fed's interest is the participation of other countries such as the European Union and China.
Brainard is of the view that as the holder of the world's reserve currency, it is more encouraging for the United States to be involved as digital payments are increasingly being used every day and other countries are also taking the opportunity to develop crypto.
The central bank must also anticipate changing consumer trends and ensure that Americans have access to central bank cryptocurrencies because it is safer to conduct transactions.
Increased involvement of digital payments from private companies could pose a threat to payment systems and data manipulation, Brainard said.
However, Brainard argues that policy questions and technological problems need to be addressed first before the U.S. government pursues the adoption of cryptocurrencies in the real world.
