Congressmen called on US Central Bank to develop their own digital currency

Two congressmen asked the chairman of the US Federal Reserve, Jerome Powell, to consider creating a digital version of the national currency.

In their letter, House of Representatives French Hill and Bill Foster emphasized that they were concerned about the risks that other countries or companies pose for the US dollar. Therefore, they asked to consider the possibility of launching their own digital currency. In a letter, congressmen noted:

“The Federal Reserve, which serves as the central bank of the United States, has the ability to develop a national digital currency. We are afraid that the primacy of the US dollar will be threatened by any digital currency. Thus, according to the Bank for International Settlements, about 40 countries are developing or are considering the possibility of creating their own digital currency. ”

Hill and Foster admit that now cryptocurrencies are mainly used for speculation, but in the future they may become popular for payments. Congressmen also noted that large private companies such as Facebook, JPMorgan and Wells Fargo are developing their digital currencies.

“Given that digital currencies can get features and become a substitute for paper money, it is becoming increasingly important for the Federal Reserve to launch a project to develop the US national digital currency,” the congressmen concluded.

In August, the head of the Bank of England Mark Carney (Mark Carney) said that the US dollar must be replaced by a digital currency similar to Libra. But the former top manager of the US Federal Reserve, Simon Potter, believes that it makes no sense to replace the US dollar with digital currency as the world’s reserve currency.

Read This Now: Bakkt to launch Bitcoin futures on cash settlement terms