Fed Governor Lael Brainard has called the U.S to back a digital dollar, according to CNBC. Brainard says a digital dollar would enhance financial inclusion by incorporating the “unbanked” Americans.
Brainard cites the safety of a Fed-backed digital asset, its efficiency, and importance in cross-border trade.
Brainard says Covid-19 has stressed a need for a broad financial system
The comments by Brainard comes after Fed chair Jerome Powell said the central bank would release a digital currency working paper in the summer.
MIT and Boston Fed are jointly working to build a hypothetical model for digital dollar while other districts are also exploring the idea.
If pursued, the U.S will join peers, including China, exploring the idea of a digital domestic currency.
Bitcoin is currently gaining. BTCUSD is up 8.50%
