Janet Yellen, U.S. Treasury Secretary, has offered her views on the possibility of a digital currency but is hesitant about coming to any conclusions at this point in proceedings. Yellen stated on Thursday that she was not forming a view about whether the Federal Reserve should create a virtual version of the dollar. However, such a move would require wide consensus between Congress, the U.S. central banks and the White House.
This is in line with recent reports that the Federal Reserve is investigating whether an electronic version would be beneficial. Yellen stated that the digital dollar has both pros and cons. She has thoughts about its implementation but feels that more research is needed before she can make any definitive answers.
Yellen believes that the benefits of a central bank’s digital currency are worth further research, as well as its impact on banks.
Lael Brainard from the Federal Reserve, who President Biden chose to be vice-chair of US central banks, called for a fast establishment of a digital currency. She said that it was impossible to imagine not having one, as China and other countries are creating their own digital currencies at central banks. This she considered a race for the top.
Related: The US must prepare for digital currency
The Fed secretary stated that consensus is necessary before the Fed can move forward. Yellen stated that the Federal Reserve was currently conducting a study on the topic and that it would be ready soon. However, they recognize that they need broad consensus among authorities before they can move forward.
“This is an important decision and must be supported by consensus. While there are many benefits, there are also significant costs.
Cointelegraph reported that Fed Chair Jerome Powell said in September that the central bank did not need to rush their plans for digital currency development. Powell stated that the Fed is not moving too fast to adopt the movement, despite several central banks having their own CBDCs.