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Fed Inches Toward Crypto, Biden Directs Agencies To Prepare Report

The federal government has taken rapid strides towards introducing primary digital US currency. The idea of digital currency has been in circulation for a long time. The Federal Reserve has started weighing in on the pros and cons of the currency launch and has also asked for comments from everyday individuals. The New York Times reports that the Federal agency released a report on Thursday to look into the details concerning the debate. The outcome of the discussion will shape the government’s future decisions.

The New York Times quoted Jerome H. Powell, the Fed chair, who said,” We look forward to engaging with the public, elected representatives and a broad range of stakeholders as we examine the positives and negatives of a central bank digital currency in the United States.” Central banks of several other nations are pondering over a similar issue. The increased international discussion regarding the matter has influenced the US Fed’s decision; the launch of primary digital currency will widen the scope for more significant and remote transactions within and outside the US.

Digital Currency Will Be Backed By The US Central Bank

The primary digital currency will be similar to electronic cash. The digital currency will function identical to the present online mediums, with the backing of the American Central Bank being the sole difference. The money will be a form of a digital dollar that allows the government to facilitate complex and bulky transactions. Several authorities have prioritized congress’ approval before taking further steps in this direction. Financial experts have pointed out several benefits and low-risk attributes of the central digital currency.

Digital Currency Will Bring A Revolution

The New York Times cited the Fed release concerning the discussion; it reads, “The currency could provide a safe, digital payment option for households and businesses as the payments system continues to evolve, and may result in faster payment options between countries.” The paper also mentioned several sensitive areas concerning the currency that need careful and deep examination on the part of the government. The digital currency launch will impact the monetary policy and the country’s financial infrastructure. The government should ensure complete safety and higher efficiency of digital currency transactions.

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