U.S. Federal Reserve Board member Lael Brainard said the country should be at the forefront of developing a government cryptocurrency to strengthen the U.S. dollar's role as a global reserve currency.
Lael Brainard said this week that leading state cryptocurrency projects could have a "significant impact" on the global financial system. She believes the U.S. should take a leading role in the system.
She said the U.S. Federal Reserve is "sharpening its focus" on four key areas of public cryptocurrency development: the growing role of digital private money, the transition to digital payments, plans to use foreign public cryptocurrencies in international payments and the problems associated with inaccessible financial services."
Brainard described the potential benefits of public cryptocurrency adoption and said the coronavirus pandemic has "accelerated the transition to digital payments" among U.S. households. She noted that it took weeks for some households to distribute prepaid debit cards as economic relief.
Brainard also noted the potential risks associated with the widespread adoption of private Stablecoins, and suggested that public cryptocurrency could provide useful services and opportunities without undermining government control of monetary policy
