Big bucks Biden: US announces its exploring digital currency options

Big bucks Biden: US announces its exploring digital currency options.

President Joe Biden had previously shared his support for the idea.

AN announcement from the US Federal Reserve on Wednesday, April 27, stated the country is exploring digital currency options, a move backed by President Joe Biden.

“While the Federal Reserve has made no decisions on whether to pursue or implement a central bank digital currency, or CBDC, we have been exploring the potential benefits and risks of CBDCs from a variety of angles, including through technological research and experimentation,” a statement read.

“CBDC is generally defined as a digital liability of a central bank that is widely available to the general public. Today in the United States, Federal Reserve notes (i.e., physical currency) are the only type of central bank money available to the general public.

“Like existing forms of money, a CBDC would enable the general public to make digital payments. As a liability of the Federal Reserve, however, a CBDC would be the safest digital asset available to the general public, with no associated credit or liquidity risk,” it continued.

It added: “The Federal Reserve Board has issued a discussion paper that examines the pros and cons of a potential U.S. CBDC. As part of this process, we are seeking public feedback on a range of topics related to CBDC. The Federal Reserve is committed to hearing a wide range of voices on these topics.”

While the Federal Reserve has made no decisions on whether to pursue or implement a central bank digital currency, or CBDC, we have been exploring the potential benefits & risks of CBDCs from a variety of angles, including through technological research and experimentation. (2/3)

— Federal Reserve (@federalreserve) April 27, 2022

On March 9, US President Joe Biden revealed that he strongly supports the country’s move towards a digital currency.

“My Administration places the highest urgency on research and development efforts into the potential design and deployment options of a United States CBDC,” the executive order read at the time.

“We know the implications of potentially issuing a digital dollar are profound. They’re extraordinarily wide-ranging,” a senior administration official told reporters at the time

“The potential here is enormous, and it’s very interesting,” said David Yermack, a professor and the chair of the finance department at New York University.

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