American Federal Reserve actively working for building US Digital Dollar amid growing interest in digital currencies across the globe. Mutually, the Massachusetts Institute of Technology (MIT) and the Federal Reserve are working on introducing US Digital Dollar. This news brought to the limelight by Jerome Powell, while addressing in IMF annual debate on the Central Bank Digital Currency Program (CBDC).
However, Powell warned in this regard that:
Since the US Dollar is a global reserve currency. So, companies and central banks across the globe use it. So, the US will have to work hard and to ensure safety and security against cyber-attacks, counterfeiting, and frauds. Inevitably, the US has to address these risks before issuing online dollar
Furthermore, there are some problems where it is more important to be right than to be first. Being right means, we should look for the potential risks of CBDC. We cannot make decisions only on the basis of only potential benefits. As per several reports, the announcement of the Libra digital currency by the American Social Media Company, Facebook urges America and the US Federal Reserve to start research on the digital dollar.
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It is worth mentioning that Libra is the blockchain-based payment method introduced by Facebook. Contrarily to other major and prominent cryptocurrencies, Libra will be managed and entrusted by the Libra Association. Libra Association is a membership organization comprises of multiple sectors like payment, telecommunication, technology, nonprofits, online marketplace, and venture capital.