Potential central bank digital currencies should be integrated into existing payment systems alongside cash and other forms of money, Federal Reserve Chairman Jerome Powell said.
“A recent report by the Bank for International Settlements and a group of seven central banks, which includes the Fed, assessed the viability of CBDCs in helping central banks meet their public policy objectives,” Powell said in comments Thursday. prerecorded video delivered to payment. conference in Basel, Switzerland.
“Relevant to today’s topic, one of the three key principles highlighted in the report is that a CBDC needs to coexist with cash and other types of money in a flexible and innovative payment system,” Powell said.
The Fed chairman delivered the closing speech at a conference organized by the Committee on Payments and Market Infrastructures, a group of central bankers from around the world convened by the BIS.
“The Covid crisis has further highlighted the need to address the limitations of our current arrangements for cross-border payments,” Powell said. “And as this conference amply demonstrates, despite the challenges of this past year, we have still been able to make significant progress.”