Federal Reserve Explores Digital Currencies

On Aug. 13, 2020, The Federal Reserve issued a press release highlighting the research and experimentation the central bank system has been conducting to enhance its understanding of digital currencies and their use by central banks. Additionally, as an effort to support the Federal Reserve Board’s broader assessment of central bank digital currency systems’ safety and efficiency, the Federal Reserve Bank of Boston is involved in a multiyear collaboration with researchers at the Massachusetts Institute of Technology to build and evaluate a hypothetical digital currency specifically oriented with central bank uses.

"Given the dollar's important role, it is essential that the Federal Reserve remain on the frontier of research and policy development regarding central bank digital currencies," stated Federal Reserve Board Governor Lael Brainard. "Like other central banks, we are continuing to assess the opportunities and challenges of, as well as the use cases for, a digital currency, as a complement to cash and other payments options."

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