Treasury Secretary Janet Yellen has said she is unsure whether or not the Federal Reserve should create a digital version of the dollar, Reuters reported on Thursday (December 2nd).
However, such a move would require a broad agreement between Congress, the US central bank and the White House.
At a Reuters Next conference, Yellen said there are both pros and cons to a digital dollar, adding that a Fed report on the matter is expected to be released soon. She said the issue has generally not been seriously discussed before.
“It is a decision which is important and which must generate a consensus. There are some benefits, but there are also significant costs, ”Yellen said. “It can work to disintermediate the banking system. And, you know, we have to analyze the pros and cons. I have no sight yet.
Meanwhile, Fed Governor Lael Brainard, who is President Joe Biden’s candidate for central bank vice-president, has said urgent action is needed on the matter. She said over the summer that she couldn’t ‘wrap [her] go around China developing one, along with other countries, while the US had no plan at all.
PYMNTS wrote that, given the list of crypto officials due to speak to the House Financial Services Committee later this month – including CEOs of Circle, Bitfury, Paxos and more – it’s clear that ‘there will likely be some crypto regulatory action to come.
The hearing, scheduled for December 8, is titled Digital Assets and the Future of Finance: Understanding the Challenges and Benefits of Financial Innovation in the United States.
Read more: Crypto Experts Next close-up of the upcoming Congress; Here’s what to expect
PYMNTS writes that it is intended to examine how the government should support crypto-related innovation and also build a regulatory structure to protect users.
Representative Maxine Waters, chair of the committee, says there needs to be regulation on digital assets. It is not a complete consensus; for example, the Digital Chamber of Commerce asserts that stablecoins do not pose a threat to the financial system.