Powell has advanced that the Fed is considering the digital currency of the U.S. central bank

On Thursday, Jay Powell accelerated the possibility of examining the digital version of the dollar that would be controlled by the US Federal Reserve.

The president of the faith has said he will seek public opinion on the idea amid pressure from some U.S. lawmakers and growing interest. central bank digital currencies (CBDCs) around the world.

In a strange video statement release On the Fed’s website, Powell stressed that there are potential benefits and disadvantages associated with digital currencies, and highlighted the growth of so-called private digital currencies that are linked to dollars, which he believes could be a threat to the financial system.

“The efficient functioning of our economy requires people to trust not only the dollar, but also the payment networks, banks and payment service providers that allow them to pour money every day.”

“Our focus is on ensuring a secure and efficient payment system that will provide broad benefits to American homes and businesses while also supporting innovation.”

The Fed has long been looking at digital currency issued by central banks, but has been seen to be more skeptical than monetary authorities in some other countries. China is already piloting the digital renminbi.

Powell said any CBDC should be “as a supplement to, and not a replacement for, digital forms of the current dollar’s private sector, such as deposits in commercial banks.”

The Fed would publish an article this summer to “stimulate broad dialogue,” he said, and would seek contributions on issues such as payments, financial inclusion and privacy.

He added that the Fed will play a “leading role” in the evolution of international standards for the CBDC.

Powell says Fed closely monitors private sector payment innovations, including marketing stablecoins and price increases cryptocurrencies like bitcoin.

“Cryptoconferencing has not served as a convenient way to make payments, given the fluctuations in their value among other factors,” he said. “Stablecoins aims to use new technologies to improve payment efficiency, speed up settlement flows and reduce end-user costs, but they can also lead to potential risks for these users and the wider financial system.”

As establishments proliferate, it calls for better regulatory oversight, “including attention to innovative private sector payments that do not fall within the traditional regulations that apply to banks, investment firms and other financial intermediaries.”

Powell said the upcoming discussion paper will mark “the beginning of what will be a thoughtful and thoughtful process,” and promised to hear “diverse voices” before making any decisions.

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