Federal agencies release reports on creating a digital dollar – WSOC TV

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WASHINGTON — Federal agencies released nine reports Friday on the development of a central bank digital currency, also known as the digital dollar.

The move follows President Joe Biden’s March executive order that urged the Federal Reserve to consider whether the central bank should create its own digital currency.

According to the Associated Press, central bank digital currencies, or CBDCs, differ from the existing digital currency available to the general public. CBDCs would be a direct responsibility of the Federal Reserve, not a commercial bank.

The published reports covered the impact of cryptocurrency on financial markets, innovation, and other aspects of the economic system.

“These reports and their recommendations provide a solid foundation for policymakers as we work to realize the potential benefits of digital assets and mitigate and minimize the risks,” Treasury Secretary Janet Yellen said in a statement after the release. reports.

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The White House is focusing on the risks and benefits of cryptocurrencies, including how a digital dollar could bolster the United States’ role as a leader in the global financial system.

According to the nonpartisan Atlantic Council think tank, at least 105 countries are currently exploring or have created a central bank digital currency.

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