America\u2019s central bank, the Federal Reserve, or Fed, has plans for a Digital Dollar. Fed Chair Jay Powell confirms the Federal Reserve is investigating the creation of a central bank digital currency, or CBDC, in a 20 May 2021 video.\u201cFor the past several years, the Federal Reserve has been exploring the potential benefits and risks of CBDCs from a variety of angles, including through technological research and experimentation,\u201d Powell reveals.Unfortunately, Powell did not reveal any details of the \u201ctechnological research and experimentation.\u201d\u201cOur key focus is on whether and how a CBDC could improve on an already safe, effective, dynamic, and efficient U.S. domestic payments system,\u201d Powell said.\u201cWe think it is important that any potential CBDC could serve as a complement to, and not a replacement of, cash and current private-sector digital forms of the dollar, such as deposits at commercial banks.\u201d*I think Powell views a CBDC as a complement to the paper dollar and the unofficial digital dollars in the present banking system.The difference between the CBDC and current digital versions of the dollar is that the Fed itself will create the Digital Dollar. Thus, the Federal Reserve will control the supply of a U.S. Central bank digital currency.Another advantage to a CBDC is that it could create a digital payment mechanism under the Fed\u2019s control. Private institutions such as banks and Wall Street control existing digital payment mechanisms, such as checking accounts, funds transfers, wire transfers, stablecoins, debit cards, and credit cards.The Federal Reserve\u2019s mission is to control America\u2019s money supply. The Fed cannot control the money supply if private companies control the payments system. However, blockchain could give the Fed control over the payments system.For instance, Fed engineers could build a Federal Reserve Cryptocurrency that contains a digital kill switch that allows Fed officials to destroy the currency.\u2026<\/p>","protected":false},"excerpt":{"rendered":"
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