Based on recent events, the idea of a digital dollar is no longer as alien as most might think. According to Lael Brainard, a member of the board of governors of the United States Federal Reserve, the institution is considering the idea of a digital dollar and is not at all opposed to it.
Brainard made this comment as part of a speech given at a Stanford Graduate School of Business symposium. According to her, the Federal Reserve is currently doing some research focused on distributed ledger technologies. She suggested that the agency is looking at how this technology could be applied for the creation of digital currency, as well as a central bank digital currency (CBDC).
She also seemed to suggest that the use of a CBDC is somewhat inevitable at this point. This is in reference to research done by the Bank for International Settlements. The survey revealed that currently, at least 80% of all central banks all over the world are focused on CBDCs. Recent reports also show that a few are already working on creating theirs.
In December last year, Kryptomoney reported that the People’s Bank of China (PBoC) is ready to run a pilot test on its digital Yuan. Reports suggest the test will take place in Shenzhen and Suzhou cities, with just a few institutions.
Image Credits: Pixabay
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