The Fed released the video message Powell sent to the conference titled “Pushing the Boundaries of Payments: Towards Faster, Cheaper, More Transparent and More Inclusive Cross-Border Payments” organized by the Payments and Market Infrastructures Committee.
Pointing out that the new type of Corona virus (Covid-19) epidemic sheds light on the less efficient areas of the current payment system and accelerates the desire for improvement and digitalization, Powell explained that the Fed did its part to examine the role of new technologies.
Stating that the studies on the central bank digital currency are carried out by the Board of Directors in cooperation with the Boston Fed and Massachusetts Institute of Technology (MIT) researchers, Powell said in the report prepared by 7 central banks, including the Bank for International Settlements and the Fed, central banks to achieve public policy targets He reminded that the feasibility of central bank digital currencies is being evaluated in helping.
“One of the three basic principles highlighted in the report is that the central bank currency should coexist with cash and other types of money in a flexible and innovative payment system,” Powell said. found the assessment.
Stating that the combination of policy makers, private sector representatives and all stakeholders, including academia, will achieve an improved payment ecosystem, Powell added that the crisis caused by the Covid-19 outbreak brings the need to address the limitations of existing regulations for cross-border payments.