Locate Federal Reserve Chairman Jerome Powell4 qualities that the digital dollar should have in the United States, but he denied that these clarifications, as an indication of a final decision on the digital dollar.
Powell said the central bank’s digital currency would need to ensure user privacy, and should be “identifiable,” similar to how US bank accounts are identified to prevent money laundering; In addition to the necessity of an intermediary, or adoption by the current banking system; Finally, it should serve as a widely accepted payment method for many individuals and institutions, according to Bloomberg, and Al Arabiya.net reviewed it.
Powell made the comments Wednesday during a virtual session at the Bank for International Settlements Innovation Summit.
The head of the Federal Reserve also warned that crypto assets were “used to facilitate illegal activity”, and this should be prevented, and indicated the fear of some of these assets, especially in terms of financial stability.
US central bankers are researching and experimenting with digital currencies, although Powell did not recommend a digital dollar, saying such a move would need more input from US lawmakers and stakeholders.
Federal Reserve officials are currently gathering opinions to produce what is known as a “white paper” on the topic they published in January, which discussed the risks and benefits of a central bank digital currency without endorsing any digital currency.
The “white paper”, or white paper, is defined as a promotional business model that markets rationales with the aim of presenting a financial instrument or a specific product, which is complex, and serves as a reference to understand the special nature of this product, and is always put forward before the issuance of any cryptocurrency to understand its nature and way of working , the mechanism of its evaluation, and ways to obtain it, or its instrument.