Written by Mandy Williams
The United States has finally joined the bandwagon of countries testing a central bank digital currency (CBDC), Thursday reports revealed.
Governor Lael Brainard said during a virtual technology event yesterday that the US Federal Reserve, in collaboration with research teams from Boston Fed and Massachusetts Institute of Technology (MIT), is conducting experiments with a hypothetical digital currency.
According to Brainard, both institutions have been researching blockchain technology for several years to see how the central bank can utilize it for a digital dollar alongside the effect it might have on the existing financial system.
“We are taking the time and effort to understand the significant implications of digital currencies and central-bank-digital-currencies around the globe,” she said, adding that the dollar’s significance as a global reserve currency means the Fed has a vital role to play in the research and development of digital currencies.
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