The United States is looking to launch its own cryptocurrency, according to the Fed governor

The US Federal Reserve is experimenting with blockchain technology, with the aim of establishing potential use cases for a “central bank digital currency” (CBDC). Fed Governor Lael Brainard said this in a recent speech. But she also noted that there are still risks and they need to be addressed before launching a digital currency.

As Reuters reported , Federal Reserve Governor Lael Brainard recently mentioned the country's potential involvement in central bank digital currencies, or CBDCs. According to her, the U.S. central bank is investigating the feasibility of issuing a digital currency.

The United States contemplating a CBDC

They are conducting research and experiments related to distributed ledger technologies and their potential use case for digital currencies, including the potential for a CBDC.

“We are collaborating with other central banks as we advance our understanding of central bank digital currencies.”

Recently, a survey by the Bank for International Settlements (BIS) regarding the emerging trend of CBDCs was carried out. The results were that 80% of all participating banks are working on launching their own digital currency. Brainard also pointed out the extreme competition in the field, adding that there are “a number of reasons to also make sure that we are at the frontier of both research and policy development.”

Libra changed the game

Interestingly, less than two years ago, Brainard seemed extremely opposed to the idea of ​​launching a CBDC. In addition to all the regulatory hurdles he mentioned, the Fed governor also indicated that "there is no demonstrated need for a Fed-issued digital currency . "

Now, however, the situation has changed dramatically when it came to the plans of Facebook to launch your own cryptocurrency: Pound Brainard said that since it was announced last year, it brought “imparted urgency” around the topic of digital currency.