US Federal Reserve Board Chairman Powell said on the 19th that the Fed has further work to do before issuing digital currency, and has not yet decided whether to issue digital currencies.
Powell said at the International Monetary Fund (IMF) and the World Bank’s autumn annual meeting that day that before issuing digital currencies, the Federal Reserve needs to consult with stakeholders extensively and assess the potential costs and implications of digital currencies for the U.S. economy and payment system. Income, has not yet decided whether to issue digital currencies..
Powell pointed out that any digital currencies. should be a supplement to cash, not a replacement for cash. Digital currency should not replace the U.S. dollar electronic payment form of the private sector such as commercial banks. Since the private sector is “not responsible” for public welfare, the private sector should not participate in the design and issuance of the US dollar digital currency.
On the same day, the IMF published an article discussing the impact of new digital currency forms that can be used for cross-border payments on macro finance. The article pointed out that cross-border digital currencies will bring risks and policy challenges. In the absence of relevant safeguards, cross-border digital currencies may facilitate illegal flows, making it more difficult for regulatory authorities to implement foreign exchange restrictions and manage capital flows.