Federal Reserve: Digital dollar may be ready in July
Jerome Powell, president of the United States Federal Reserve (Fed), demonstrated that he is fulfilling his promise made this month on the digital dollar.
In early March, Powell declared that the digital dollar would be the entity’s priority for 2021. On Monday, the Fed and the Massachusetts Institute of Technology (MIT) revealed to Bloomberg that they plan to release research and updates on the subject in July.
According to James Cunha, head of the Boston Fed’s digital dollar project, there are two prototypes of transactions underway. However, he has not confirmed whether they are based on the blockchain ecosystem.
Some financial groups, especially banks, see this cryptocurrency as a threat to business. That’s because U.S. residents will no longer need these institutions as intermediaries for bank transactions.
Experts point out that “Fedcoin”, as the digital dollar has been dubbed, will face more resistance among traditional sectors. For the analyst Michael Del Grosso, this clash will be only for a while.
Powell has shown himself open to dialogue with investors and executives linked to the blockchain technology. This year, the Fed chairman even said that cryptocurrencies “can coexist” with traditional money. The statement was well received by companies in the segment and even by payment networks.
Payment companies Visa and Mastercard have already shown interest in joining the digital currency. Both companies are looking for legal ways to include support for Central Bank Digital Currencies (CBDC) on their platforms.
Oliver Jenkyn, President of Visa in North America, said that negotiations are already underway:
“We are talking to banks as they think about creating a potential digital currency for the Central Bank. We are also talking about design. ”
In December, Visa proposed an offline payment system for CBDC. However, the survey was nothing more than a survey on the subject.