Philadelphia Fed President: Fed Not Ready to Move Toward Digital Dollar

Due to the Federal Open Market Committee (FOMC) meeting on September 21 and 22, the Federal Reserve will officially enter the silent period before the interest rate meeting starting this week, which means that no Federal Reserve officials will make monetary policy speeches in public.

Philadelphia Fed President Patrick Harker recently spoke to Nikkei, his last comment before the silent period, saying: “This is an area that some of our economists at the Fed have been doing a lot of research on, and like anything in life, it has pros and cons, and we’re trying to weigh those pros and cons.

I don’t think we’re ready to move in that direction right now, but we need to think about, if such a central bank digital currency were ready, what impact would it have on the U.S. banking system? What impact would it have on other institutions in the U.S.? That’s what we need to think about first.”