Yellen says mind not made up on U.S. central bank digital currency
Reuters
Published Dec 02, 2021 02:20PM ET
By Alessandra Galloni
WASHINGTON (Reuters) - U.S. Treasury Secretary Janet Yellen said on Thursday she has not formed a view on whether the Federal Reserve should create a digital version of the dollar, but such a move would require broad consensus among Congress, the U.S. central bank and the White House.
Yellen said during a Reuters Next conference interview that the advantages and disadvantages of a central bank digital currency needed further study, including its effects on the banking system.
"I see both pros and cons to doing it. And my own mind is not made up about this," Yellen said.
Fed Governor Lael Brainard, who is President Joe Biden's nominee for the U.S. central bank's vice chair position, has called for "urgency" in developing a digital dollar, saying in July that she "can't wrap my head around" not having one when China and other countries are developing their own central bank digital currencies.
Yellen said a Fed report on the issue was expected soon, and the central bank understands that consensus is necessary to proceed.
The Treasury chief, who led the Fed from 2014 to 2018, said the issue has not been discussed in a "serious way" at the White House and that Congress will also need to weigh in.
"This is a decision that's important and needs to command consensus. There are some benefits, but there are also meaningful costs," Yellen said. "It can work to disintermediate the banking system. And, you know, we need to work through the pros and cons. I don't have a view yet."
Get The News You Want
Written By: Reuters
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.