Fed Chairman: 80% of World Central Banks Consider Digital Currencies

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During a panel hosted by the International Monetary Fund earlier this week, Federal Reserve Chairman Jerome Powell said 80% of central banks around the world were exploring the idea of ​​issuing digital currency from the central bank (CBDC), although the US Fed has not made a decision to do the same yet.

Powell’s statement echoes a research report released by the Bank for International Settlements (BIS) in January that found 80% of central banks are currently engaged in CBDC development, up from 70% last year.

Earlier in October, the ECB issued statements indicating that it was considering using a digital euro to top up a euro in cash.

“A digital euro would preserve the advantages that the euro offers us all. This would help deal with situations where people no longer prefer cash, ”the ECB said in a written statement on its website. “It would help cushion the impact of extreme events – such as natural disasters or pandemics – when traditional payment services might no longer work. It could also be crucial if people turn to foreign digital means of payment, which could undermine financial stability and monetary sovereignty in the euro area. ”

Fabio Panetta, a member of the ECB’s executive board, wrote in a blog post that central banks, including the ECB, should be ready to adapt to a cashless system, which is the direction the company is taking.

“The report concludes that we should be ready to issue a digital euro if and when developments around us make it necessary. This means that we must already prepare for it. In the coming months, we will listen and experiment in order to be able to make a fully informed decision on the possible development and launch of a digital euro, ”said Panetta.

David Erfle, founder of JuniorMining.com, said the ECB had no choice but to issue digital or alternative currencies, as there is still significant debt in the eurozone that needs to be consolidated.

“I just know that the financial situation they find themselves in when it comes to debt doesn’t give them a choice,” he said. “Now they basically have to do it, because they realize that there is no way for the governments of these big economies to continue borrowing at these ridiculously low interest rates, but the bigger problem is is that all past debt cannot be continuously rolled off because there are no buyers. “

Warning: The opinions expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure the accuracy of the information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is for informational purposes only. This is not a solicitation to effect an exchange of commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept guilt for any loss and / or damage resulting from the use of this publication.

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