The Fed is confident that CBDC will not replace fiat

The head of the US Federal Reserve System, Jerome Powell, expressed the opinion that central bank digital currencies (CBDCs) will not become a substitute for conventional money. CBDCs will coexist with them. According to Powell, not only the government, but also the private sector should be engaged in improving the global payment system. “CBDCs must coexist with cash and other currencies in a flexible, innovative payment system,” said the Fed chief.

At the same time, experts from the Bank for International Settlements (BIS) conducted their research on the estimated future of global payments and the interaction of different CBDCs.

BIS expects countries to continue to emerge whose central banks will also start launching their CBDCs, leading to interoperability issues between different digital currencies. Experts emphasize that CBDC will need to compete with those private stablecoins that already exist. In addition, the researchers announced the possible emergence of a global stablecoin, but whether it will be a digital dollar issued by the US Federal Reserve or another CBDC in BIS is not yet sure.

And Russian experts said that the regulation of the cryptocurrency market and the likely launch of CBDC will eventually “destroy” the digital assets sector. "The government can create conditions under which we simply do not want to use cryptocurrency," said Elina Sidorenko, head of the interdepartmental group of the State Duma of the Russian Federation for assessing the risks of cryptocurrency turnover.

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