United States Federal Reserve Chairman Jerome Powell on Friday hinted at major monetary changes shaking up the global financial system in the near future.
Speaking at the Federal Reserve Board’s “International Roles of the U.S. Dollar” research conference in Washington D.C., Powell began by describing the dollar’s role as the world’s reserve currency in the post-WWII era.
After explaining the benefits of the dollar’s international role, Powell changed his tone and warned, “Looking forward, rapid changes are taking place in the global monetary system that may affect the international role of the dollar in the future.”
He continued, saying, “Most major economies already have or are in the process of developing instant, 24/7 payments. Our own FedNow service will be coming online in 2023. And in light of the tremendous growth in crypto-assets and stablecoins, the Federal Reserve is examining whether a U.S. central bank digital currency (CBDC) would improve on an already safe and efficient domestic payments system.“
Citing a Federal Reserve white paper on the subject, Powell claimed a U.S. CBDC “could also potentially help maintain the dollar’s international standing.”