- Federal Reserve Chairman Jerome Powell told Congress on Tuesday that he is carefully analyzing the issuance of a digital US dollar.
- Powell called the potential digital dollar a “high priority” project, according to testimony.
- The possible issuance of a digital dollar would come amid a surge in cryptocurrencies like bitcoin, which briefly surpassed the market value of $ 1 trillion last week.
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Federal Reserve Chairman Jerome Powell told Congress on Tuesday that the Fed is “looking carefully” at whether it should issue a digital US dollar.
A digital currency developed by the Fed is a “high priority project for us,” Powell told Congress, but added that there are “important technical and policy issues” related to a digital US dollar.
“We are committed to solving technology problems and consulting very broadly with the public and very transparently with all stakeholders on whether we should do this,” Powell said.
As the world’s reserve currency, Powell emphasized that the United States doesn’t have to be the first to issue a digital dollar, but it does need to “get it right.”
“This is something that we are investing time and work in across the entire Federal Reserve system,” Powell said.
The move would come amid a surge in the popularity of cryptocurrencies like bitcoin and ethereum. Bitcoin briefly hit $ 1 trillion in market value last week and traded above $ 58,000 over the weekend.