US Federal Reserve Reveals Building a Digital Dollar Codebase With MIT

The U.S. central bank has been working on creating a digital dollar, according to a recently published transcript from Federal Reserve Board Governor Lael Brainard. On Thursday, she told participants attending “San Francisco’s Innovation Office Hours” webcast, that the Fed has been “collaborating with researchers at the Massachusetts Institute of Technology (MIT)” toward building a CBDC codebase.

The central bank cold wars have begun, as the United States clearly wants to compete with China’s upcoming central bank digital currency (CBDC). Not too long ago, the Federal Reserve Chair Jerome Powell didn’t give the media too many clues about the bank’s efforts to create a digital dollar.

Powell acted as though the central bank was simply investigating the possibilities of a CBDC, but nothing more than that. Federal Reserve Board Governor Lael Brainard seems to be telling a different story.

US Federal Reserve Reveals Building a Digital Dollar Codebase With MIT
Just recently, Fed Chair Jerome Powell told Rep. Tom Emmer (R-Minn.) that private entities should not get involved with building the digital dollar and the monetary system should be left to the central bank. “I do think this is something that the central banks have to design,” Powell stressed. “The private sector is not involved in creating the money supply, that’s something the central bank does.”

Brainard discussed the subject in a webcast published on August 13, which was conveniently called “An Update on Digital Currencies.” The Board Governor explained that the coronavirus outbreak was a reminder of how far behind the country is with regard to digital currency payments.

“The Covid-19 crisis is a dramatic reminder of the importance of a resilient and trusted payments infrastructure that is accessible to all Americans,” Brainard stressed. The Fed executive further stated:

It was notable that after a sharp reduction in spending early in the COVID-19 crisis, many households increased their spending starting on the day they received emergency relief…

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