(USNewsBreak.com) – Cryptocurrency is a unique and somewhat confusing currency option, but it continues to grow trendier and more popular over time. While it has yet to become mainstream, the US government considers it essential enough to mull over the idea of creating its own digital currency within the central banking system.
On January 20, the Federal Reserve released a paper detailing the potential creation of a central bank digital currency (CBDC). The agency listed the advantages and disadvantages of this type of system to allow for further research, investigation, and public input.
Federal Reserve weighs creating 'digital cash' that would allow direct transfers without a bank https://t.co/vl1rApxrTP
— Daily Mail US (@DailyMail) January 21, 2022
The Fed explained that a digital currency would work similarly to the actual dollar but facilitate faster transactions. It would allow the US to compete with other countries, such as China, that are currently switching to digital notes.
The agency did admit it has serious concerns about the technology, such as how a switch to digital dollars might impact financial stability. It would also need to figure out how CBDC might work in conjunction with existing currency options. There would be privacy rights and counterfeiting issues to consider as well.
The Federal Reserve hasn’t thus far shared its stance on the issue of CBDC. It merely presented ideas to contemplate and said moving forward on the matter would not happen without approval from the executive branch.
Is a move to digital the future of US currency? If so, do you think this is the best choice for the country?
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