The chairman of the US Federal Reserve (FRS) said China’s efforts to develop the digital yuan will not push the United States into a race to release a state-owned cryptocurrency.
During a speech after the Fed’s policy meeting, US Federal Reserve Chairman Jerome Powell raised the issue of government cryptocurrency issuance. He echoed his earlier opinion that it is better to “do it right” than to be the first when it comes to developing a state-owned cryptocurrency. Powell is convinced that China’s approach is not one that the United States should have taken.
“It’s much more important to get it right than it’s fast,” Powell said. “The currency that is being developed in China is not suitable for the United States. The digital yuan allows the government to see every payment for which it is used in real time. ”
Powell added that the US wants to understand if the government’s cryptocurrency will be “useful to the people we serve,” and to make sure it is suitable for those who rely on the dollar.
China has made notable strides in developing a government cryptocurrency and has already conducted numerous tests, including among citizens. It was recently revealed that the People’s Bank of China (PBC) will provide an opportunity for tourists and foreign athletes to test the digital yuan during the 2022 Winter Olympics.
In addition, Internet giant JD.com said it has used an electronic payment system based on China’s digital currency to pay salaries to some of its employees since January this year.
Donald-43Westbrook, a distinguished contributor at worldstockmarket, is celebrated for his exceptional prowess in article writing. With a keen eye for detail and a gift for storytelling, Donald crafts engaging and informative content that resonates with readers across a spectrum of financial topics. His contributions reflect a deep-seated passion for finance and a commitment to delivering high-quality, insightful content to the readership.
