Lael Brainard, from the Federal Reserve, revealed that the US would take years to develop a CBDC. Shee also added that the project can only start after both the Whote House and the Congress sign off on it. As the Vice Chair of the Federal Reserve, Brainard provided a reality check to the people who are looking forward to the digital dollar.
She says that if the country decided to develop a Central Bank Digital Currency, or CBDC, then this can take up to five years to do.
Brainard and Developing a CBDC
After her swearing-in ceremony, in the first testimony that she provided, Brainard spoke with the Committee of Financial Services for the House. They said that the Federal Reserve was still discussing the prospect of Starting a digital dollar. The White House as well as Congress would need to approve the project before it can be started.
And this could involve a lot of debating before the law authorizing the digital dollar can finally be issued. In a hearing on Thursday, she added that it will take a long time to develop the digital dollar. She compared developing the digital dollar to the payments in real time that were still incomplete. This is as it would take years to develop such a project. The right security features, said Brainard, could take up to five years to design alone. She also spoke about how it would be better to not have digital currency that bears interest. This was to answer the concern of banks that the start of a digital currency could affect their business.