FX.co ★ US central bank steps up efforts to create digital dollar

The US central bank is reportedly rushing to develop a virtual dollar. A stepped-up effort to launch a central bank digital currency can be attributed to a desire to compete with the BRICS. Notably, the group of major emerging economies has recently introduced its own payment system.

Earlier, Fed Vice Chair for Supervision Michael Barr commented on the status of the CBDC project. He noted that the US government made no specific recommendations to the Federal Reserve. At the same time, Barr added that the regulator should learn “from both domestic and international experimentation,” which could “aid decision-makers in understanding how we can best support responsible innovation that safeguards the safety and efficiency of the US payments system.”

This year has been very important for the BRICS nations. The bloc saw an explosive growth in official applications for membership. In an effort to push for a multipolar world order, it added six new members, thus expanding its global presence and increasing economic heft.

The icing on the cake has been the launch of BRICS Pay, the group’s new payment system. In this regard, the US central bank is actively exploring ways to create a digital dollar. According to Barr, officials need to examine international experience and other initiatives related to the development of central bank digital currencies.