Recently, the governor of the Federal Reserve, Lael Brainard, has confirmed that the establishment of a digital dollar is no longer an option.
Brainard also stated some of the main reasons for the need for digital assets when discussing the issue:
"The dollar is so dominant in international payments, and if there are other offerings like the central bank's digital currency (CBDC) and the United States (US) don't have it, it's not a sustainable future."
It is rumored that later this month, the central bank will distribute an official research paper related to CBDC, the US digital dollar. Although the report has not yet been confirmed, the Federal Reserve has from the beginning shown seriousness in digital currency, again after a secret meeting between its chairman, Jerome Powell with the CEO of Coinbase and Digital Dollar Project.
Powell himself also once voiced his opinion regarding the need for cryptocurrencies to automatically be eliminated if the digital dollar is launched.
However, stablecoins remain a major concern for The Fed. According to Brainard, stablecoins have the potential to diversify the financial system:
“Imagine households and businesses. If there is a strong migration from the currency, they will lose access to safe settlement assets which is what the currency has always offered. ”
Brainard is not the first individual to voice the issue of stablecoins. Previously Powell also called for a new rule to be formulated specifically for stablecoins if these assets are to be used.
