CBDCs Need to Coexist With Cash According to Jerome Powell

The United States Federal Reserve Chairman, Jerome Powell, referred to Central Bank Digital Currencies (CBD) by stating they would not replace cash but complement it.

The remarks took place at a conference hosted by the Committee on Payments and Market Infrastructures taking in Basel, Switzerland.

During the conference, Powell said,

“Relevant to today’s topic, one of the three key principles highlighted in the report is that a CBDC needs to coexist with cash and other types of money in a flexible and innovative payment system.”

The report being referenced in his closing remarks also contained two other principles that according to the Bank for International Settlements should guide CBDCs: support wider policy objectives without harming monetary and financial stability and provide features to promote innovation and efficiency.

The chairman also referred to the experiments currently being by the Federal Reserve Bank of Boston as the Covid-19 forced governments around the world to notice the limitations of current financial systems when it comes to cross-border payments.

In previous months, Powell has made it clear that the Federal Reserve doesn’t “feel the need to be first” when it comes to releasing a CBDC, remarks that come at a time when governments around the world are testing their own approaches to a central digital currency, with China being one of the most advanced on that regards.

Messari Founder Warns of Global Regulatory Risk

While cryptocurrency’s popularity and adoption have continued to grow over the years, concerns about crypto regulations around the world have consistently been shared by experts in the industry as countries like India take an unfriendly stance

Ryan Selkis, Messari’s founder, tweeted back on March 18th that while he was bullish when it came to the future of crypto, he believed that, “everyone might be mispricing global regulatory risk.”

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