Jerome Powell has promised memjerombers of the US Congress that the long-awaited report on digital currencies will be released in the coming weeks. However, according to sources from January 11, 2022, the Federal Reserve has yet to determine whether to issue a central bank digital currency (CBDC).
The Federal Reserve is preparing a report on digital currencies
Jerome Powell, the United States Federal Reserve Chairman who was renominated by President Joe Biden last November, stated during a Senate Banking Committee hearing on January 11, 2022, that the central bank’s digital currency study is ready and will be released in the coming weeks.
While cryptocurrency market participants in the United States have chastised authorities for their recent slowness in enacting amenable cryptocurrency regulation and will be hoping that Powell’s report will, to some extent, clear the regulatory fog surrounding crypto, the Fed chairman has hinted otherwise.
Keeping the Digital Dollar in Mind
According to people familiar with the situation, the report will focus on the central bank’s digital dollar intentions. However, whether the authorities would make any formal statements regarding forming a digital currency is uncertain.
In May 2021, Powell stated clearly that the Fed is researching the idea of a digital currency and that his administration’s major priority is on “ensuring a safe and efficient payment system that offers wide advantages to American households and companies while also embracing innovation.”
The rise in popularity of bitcoin (BTC) and other digital currencies has prompted central banks to explore ways to establish digital versions of their national currencies, with China already well on its way to launching its digital yuan.
China’s central bank, the People’s Bank of China (PBoC), reportedly launched a new wallet app on January 4, 2022, to speed up the adoption of the digital renminbi throughout the country.
The worldwide cryptocurrency market is valued at $2.06 trillion at press time, with bitcoin (BTC) price hovering around $43,825.