The Chairman of the U.S. Federal Reserve Jerome Powell named Facebook-led project Libra “a wakeup call”, reads the press release on the chairman’s testimony before the House Financial Services Committee from February 11.

In the discussion over a viability of the digital dollar, Federal Reserve Chairman assured the commission that the organization is “working hard on it”, with multiple projects and various types of efforts.

Speaking on the growing pressure from other countries that progressed further in CBDC-related projects, like China, as well private companies, like Facebook, Powell shared that Libra Association “really lit on fire” last year:

“It was a bit of a wakeup call that this is coming fast, and could come in a way that is quite, you know, widespread and systemically important fairly quickly if you use one of these big tech networks like Libra did”

Responding to more detailed questions about the competition from China, Powell also shared that fully public ledger would not be a good fit to the US financial system:

“There are completely different institutional context. There are things that… for example, the idea of having a ledger where you know everybody’s payments – that’s not something that would be particularly attractive in the United States context. It’s not a problem in China”

It is wort noticing that in his answers, Jerome Powell emphasised that the Federal Reserve is not planning to launch CBDC project at this moment, and could not plan, due to many unresolved issues around potential digital dollar:

“We have not decided to do this… there are many questions that need to be answered around a digital currency for the United States, including issues of, cyber issues, privacy issues, many many operational alternatives present themselves”

In the meantime, as Future Time previously reported, Cambodia has committed to issue digital currency till the end of March, which make it potential candidate to beat China in the CBDC rally.

The central bank of Sweden Riksbank has also already chosen a technology partner for the e-krona pilot project. Earlier European Central Bank has also unveiled the CBDC proof-of-concept.

Image credit: CNN

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