Federal Reserve Chair Jerome H. Powell Outlines Central Digital Currency (CBDC)

The Federal Reserve is serious looking at Central Bank Digital Currencies, or CBDCs, as a method of advancing digital currencies. According to Federal Reserve Chair Jerome Powell's statement (HERE), the Federal Reserve will be releasing a discussion paper this summer summarizing the understanding of advanced technology in digital currencies. That will be a pretty cool read 🤓.

It can be difficult to develop a central currency unless we have already developed the necessary digital infrastructure for doing so in a safe and secure fashion. That is a problem. Advancing our digital infrastructure can do wonders for speeding up national transactions and activities but it must be done so in a secure manner that can be regulated. 

What we can say is that this advancement of digital currencies is part of a large push to modernize the country into the Digital Age to create new competitive advantages (See Digital GDP on Govt. Mind). It appears we as a nation are beginning to rally to the challenges set before us and try and create one of the most advanced nations we can in a way that draws in the increasing investment and business interest (See Sociological Economic Platforms). 

He is right about how we need to have basic trust and faith in the digital dollar. Money is all about trust and without it you don't have an effective medium of exchange (i.e. trusting the dollar is worth 🐔🐔). While Jerome Powell is discussing stable coins there must be trust in the basic mechanics of digital design. You can see how trust impacts cryptocurrency at Understanding the creation of trust in cryptocurrencies: the case of Bitcoin.

Pay special attention to the study's section on trust and how blockchain technology helps protect against altering by creating hash mismatches between the blocks. They go into significant depth in trust and how it is constructed in digital currencies. You may also want to reach Harvard Business Review's Is Stablecoin the Next Big Thing in E-Commerce? (I used to get that journal digitally for a long time 😕).

You may be interesting in reading the transcript HERE. What might also want to consider is developing innovation pockets (transactional clusters) that capitalize on the new flow in currency to ensure it fuels innovation and growth through natural entrepreneurship and R&D (Two slightly different ways of developing new products through the use of formal research and practical application.)