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Fed’s Brainard sees case for central bank digital currency -Breaking


© Reuters. Federal Reserve Board Governor Lael brainard appears before a Senate Banking Committee hearing about her nomination as vice-chair. This was on Capitol Hill, Washington, U.S.A. on January 13, 2022. REUTERS/Elizabeth Frantz/Files

(Reuters) – The creation of a digital official version of the U.S. Dollar could ensure stability in financial systems as digital currencies and crypo-assets become more popular, Lael Brainard, Vice Chair Federal Reserve Federal Reserve, stated Wednesday.

Brainard testified that “the rapid and ongoing evolution of the financial digital system at national as well international levels should cause us to frame this question not as whether or not there is a necessity for a digital dollar central-bank-issued today, but rather whether conditions in the future may give rise to such need,” Brainard told the U.S. House of Representatives Financial Services Committee.

She said, “We acknowledge there are risks in not acting as well as risks associated with acting.”