US regulators are testing the potentialities of a crypto dollar. Lael Brainard, a member of the U.S. Federal Reserve’s Board of Governors, spoke about this as part of her speech to representatives of the American Federal Reserve System (FRS) and specialists from the Federal Reserve Bank.
The need of the American society for a stable payment system has become especially evident against the backdrop of the coronavirus pandemic, she said. Lael Brainard explained her point of view by the need to have a fast transfer channel at hand. The example, which, in her opinion, demonstrates the need of Americans for such tools, the specialist cited the increase in expenses of US citizens against the background of the granting of benefits by the authorities.
In order for those in need to get funds as soon as possible, US regulators have proposed using the national FedNow payment system. According to Lael Brainard, experts have accelerated the development of the project at the moment.
FedNow enables financial institutions to conduct transactions in real-time. The project is in many ways similar to the fast payment system (FPS) of the Russian Central Bank. For the first time, information about the Americans efforts on the service appeared on the network in the summer of 2019.
At the same time, US regulators do not intend to limit themselves to FedNow. According to Lael Brainard, experts from the US Federal Reserve are testing the capabilities of the national cryptocurrency. Also, regulators are studying the risks associated with the release of the crypto version of the US dollar. As she notes, the final decision on the creation of a national cryptocurrency has not yet been made.
Lael Brainard drew attention to the concerns of American regulators about China’s success in creating a national digital currency. The specialist clarified that if a positive decision is made to issue the crypto version of the dollar, the financial instrument can become an addition to the physical fiat.
Recall that the team of the Digital Dollar Fund is engaged in the creation of a national cryptocurrency in the United States. Experts presented the whitepaper of fiat crypto version in June 2020.