It is reported that U.S. Federal Reserve System has been testing digital ledge technology (DLT) in order to estimate how a new digital currency might effect the existing monetary environment, banking structure and financial stability on the whole.
The FRS official system noted that, despite significant reduction in spending caused by COVID-19, the American households started to spend money immediately after they had received the Federal relief aid. So, it became evident that any new reliable and fast system of transmitting funds is to be invented. It seems that to be that it can take form of a blockchain-based digital currency.
Jerom Powell, the Chairman of the Federal Reserve, mentioned that, though the FRS has not been actively developed such digital currency, it carefully analyzes the possibility as well as all pluses and minuses of its introduction into economic turnover. These efforts are also actual because, according to FRS officials, China has achieved a serious success in this sphere.
Generally, the experts say that tokenizing dollar will help the US economy in the several aspects: rapid distribution of the funds within the country and abroad and support USD’s role a global dominating currency.