The Fed Reserve is looking forward to publishing the research paper on the development of a central bank digital currency in a bid to launch its digital currency. Even though there are no specific plans laid out by the central bank yet, there has been significant progress in developing the payment technology. The Federal Reserve is closely supervising and carefully adapting to the innovations to move forward with the launch of the native digital currency. Jerome Powell, the central bank Chairman, said that the citizens must have faith in both traditional currencies like the US Dollar and digital payment networks, payment service providers, and banks that deal with huge cash flow daily. It is the solemn objective of the Fed Reserve to maintain an efficient and secure digital payment system that will not only benefit the domestic sector of America but will also be of great help for businesses.
The Fed Reserve officials are focusing on issuing the digital currency from the central bank in the right way. However, the Fed officials are worried due to the Chinese government’s adverse moves in the central bank digital currency space. China’s moves have triggered a new worry that there could be a dip in the value of the US Dollar as the currency of the international reserve. The head of the Blockchain Practice Department of Accenture, David Treat, said that the launch of the native digital currency by that Fed Reserve should take at least four or five years until availability and real usage. The Fed Reserve also seeks to launch FedNow in the year 2023 to look into the issues that revolve around the immediacy of payment and provide solutions for the unbanked assets.