Lael Brainard, a member of the US Federal Reserve Board, said the US needs a digital dollar because other countries are planning to issue their own state-owned cryptocurrencies.
Lael Brainard spoke in favor of a digital dollar during a speech at the Aspen Institute’s economic strategy group meeting, according to a Yahoo Finance publication. She said:
“The US dollar dominates international payments. If other large jurisdictions issue government cryptocurrencies, but the US doesn’t have it, I just don’t understand how this is possible. ”
Brainard noted that the proliferation of stablecoins before the digital dollar was released could lead to the fragmentation of the payment system. In her opinion, the digital dollar can help people without bank accounts get government assistance, such as economic payments during a pandemic.
Recall that in May, a member of the US Federal Reserve Board of Directors said that the country should be at the forefront of developing a state cryptocurrency to strengthen the role of the US dollar as a global reserve currency.
At the same time, in the spring, US Federal Reserve Chairman Jerome Powell said that China’s efforts to develop the digital yuan will not push the United States to participate in the race to release the state cryptocurrency.
Powell said in mid-July that stable cryptocurrencies should be regulated like bank deposits and money market mutual funds.
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