At the annual meeting of the International Monetary Fund (IMF), US Federal Reserve Chair Jerome Powell discussed cross-border payments and digital currencies.

According to Fed chairman during the meeting, there were several ways that a CBDC might improve the payments system. This area motivates our interest and identifies a principal reason why a CBDC may come to the United States in the future.

Jerome Powell mentioned that when discussing national digital currencies, each country must carefully consider its position on CBDCs, factoring in several things. Powell selected cyber problems and privacy problems earlier this year as two areas that need to be considered for the United States. Today, he again pointed to these topics. Furthermore, Powell said that, unlike other nations, the United States also has a heavily banked population.

For the last five to six years, the People’s Bank of China has been working on its national digital currency. Through red envelopes, Shenzhen city has already given 10 million yuan in digital currency to 50,000 randomly selected residents. The winners will spend digital yuan at 3,389 merchants in Luohu City, according to the website post. Many economists and crypto experts have thought that the Chinese digital currency might challenge the US dollar’s global supremacy.

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