Fed Looking Very Carefully at Issuing a Digital Dollar: Powell

The transcript discusses the potential issuance of a digital dollar by central banks, highlighting the technological and policy challenges involved. It emphasizes the importance of getting the implementation right, given the U.S.'s role as the world's reserve currency. The Federal Reserve is actively researching this, including a partnership with MIT, to explore the benefits such as financial inclusion, while being cautious of potential risks like destabilizing the banking system.

What is one of the main reasons central banks are considering issuing a digital dollar?

• To compete with cryptocurrencies

• To increase interest rates

• To enhance financial inclusion

• To replace physical currency

Why is it important for the world's reserve currency to 'get it right' when considering a digital dollar?

• To be the first to implement it

• To maintain global financial stability

• To increase the value of the currency

• To reduce transaction fees

What is a potential benefit of introducing a digital dollar mentioned in the transcript?

• Increasing government control

• Eliminating cash transactions

• Enhancing financial inclusion

• Reducing inflation

What is a risk associated with the introduction of a digital dollar?

• Increasing transaction times

• Increasing inflation

• Destabilizing the banking system

• Reducing the value of the dollar

What is the role of the Federal Bank of Boston in the digital dollar project?

• Setting interest rates

• Researching with MIT

• Issuing the digital dollar

• Regulating cryptocurrencies