The United States Federal Reserve has published an announcement, in which they mention the possibility of Central Bank Digital Currency being on the table. They believe that now is the right time to bring forth such endeavors, as the technology keeps improving.
While the officials stress that they have not made any final decisions on the matter, they have revealed that they have started venturing into this territory in their recent tweet:
“While the Federal Reserve has made no decisions on whether to pursue or implement a central bank digital currency (CBDC), we have been exploring the potential benefits and risks of CBDCs from a variety of angles, including through technological research and experimentation.”
They have also made callbacks to their previous FAQ publication, in which they explain why they think now is the right time to start exploring this technology, saying that CBDC should “improve on an already safe and efficient U.S. domestic payments system.”
The paper further explores the benefits and potential risks of venturing into the digital territory. If the USA decides to do so, it will join the likes of China, India, and Japan, who have already started implementing their own official digital currencies. However, as the US seems to be a little behind these countries in its CBDC implementation, it might still take a few years.