U.S. Central Bank Digital Currency Is “Inevitable”, Says Federal Reserve Official

The United States is yet to join the slowly growing list of countries who have announced a decision to begin the development of a digital currency. However, it’s possible that such a time is no longer far off any more. According to Patrick Harker, the president of the Philadelphia Federal Reserve bank, it’s only a matter of time before the U.S. Federal Reserve begins to seriously consider issuing its own digital currency.

Harker expressed his opinion at a recently held community banking conference, but also mentioned that while he strongly believes that it has become necessary to prepare for it, the U.S. should probably not take the lead. Harker said:

“Frankly I don’t think we should be the first mover as a nation to do this. [Regardless], it is inevitable…[and] I think it is better for us to start getting our hands around it.”

Harker made this known as his own addition to a slowly growing conversation globally picking up around cryptocurrencies. Specifically, many are of the opinion that digital currencies left in the hands of private institutions, will greatly take away from governments’ ability to lead financial efficiency. Recently, we Apple CEO Tim Cook also said that currency should be the government’s responsibility and shouldn’t be left in the hands of private institutions.

He also mentioned the U.S. government’s real-time payments platform called “FedNow”. However, Harker believes that FedNow will still have to evolve into crypto.

“I am looking at the next five years after that. What comes next? I do think it is something around digital currency.”

Image Credits: Pixabay

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