Jerome Powell On CBDC: Better To Be Right Than First

Jerome Powell On CBDC: Better To Be Right Than First

The US FED Chain Jerome Powell on CBDC opinion swamped all the crypto media outlets today, as he said it’s better to be right than to be first in this race. Following his comments, we are reading more in our cryptocurrency news.

Chairman Jerome Powell on CBDC comments said that the central bank is committed to exploring the potential costs and merits of launching a central bank digital currency but he hasn’t made a final decision yet. Powell believes that the United States should focus on getting right the developments of a central bank digital currency rather than doing it first.

US Federal reserve, cbdc, digita, currency
US Federal Reserve

While speaking on a panel that was hosted by the International Monetary Fund, Powell reassured that the United States is “committed to carefully and thoughtfully evaluate the potential costs and benefits of the CBDC for the US economy and payments system. He did admit that the digital currency has the potential to improve the current system of payments but he claimed that the FED hadn’t made a final decision on launching its own.  The reports from earlier suggested that the Federal reserve had started experimenting with a hypothetical digital currency but today’s speech showcased that the US central banks are still not convinced by that idea. The other global superpower china was making some serious improvements on the matter.

As reported, China had taken the CBDC tests to its citizens by airdropping $1.5 million worth of digital yuan and urged them to purchase goods. However, the first results were not promising as users said it didn’t offer anything special.

$160 million, digital yuan, china, bank
The People’s Bank of China (PBoC) building in Beijing. (Source: Bloomberg)

Despite the reports claiming that the Chinese central bank is experimenting with bigger volume transactions for its CBDC, the bank stated that they will be focusing on small retail transactions but confirmed that the trials are still ongoing in numerous regions. Over the past few weeks, multiple reports claimed that the People’s Bank of China tested central bank digital currency with a huge transaction volume to determine how much load it can support. Further rumors emerged that one house transaction in Shenzhen, south China’s Guangdong Province supported the use of the digital currency which came after citizens stated that they received a large volume of crypto from a bank after selling property.