Digital dollar

Jerome Powell thinks a digital dollar launch is possible, but a decision has not yet been made.

The Federal Reserve (Fed), which serves as the country's central bank, is studying the possibility of launching a digital dollar, but no decision has been made yet. The Fed's chairman Jerome Powell made the announcement in an interview with CBS, the transcript of which was posted on the network's website on Sunday.

"We are really evaluating it. Most of the major countries are looking at using digital currency", the Fed chief said. He said the Fed was keen to see whether such a currency would benefit the public.

The Fed chief himself sees the launch of a digital dollar as a possibility. "I think it's possible, that's all I'll say. I think it's a very interesting, subtle and complex set of questions", Powell said.

Earlier on Sunday, Bloomberg reported, citing sources, that US President Joe Biden's administration was gathering data on China's plans to use the digital yuan. According to the agency, some U.S. officials fear that Beijing may try to use the currency to reduce the dollar's role in the world.

The Biden administration is not currently planning any measures to counter threats posed by China's digital currency, the agency's sources said. However, there has been more interest in Washington in the possibility of a digital dollar. As noted in the story, US lawmakers earlier this year asked Powell, as well as Treasury Secretary Janet Yellen, for more information on the possibility.

China is one of the world leaders in developing its own digital currency, which could be available for use even without a cellular signal or internet connection. Last August, the head of the monetary policy department of the People's Bank of China (the central bank) said the PRC was conducting internal closed-door testing of the digital yuan in various cities, but there was no exact timetable for its release.