US Federal Reserve Governor Lyle Brainard participates in the “Fed License” event on October 4, 2019 at the Federal Reserve Headquarters in Washington, DC.
Federal Reserve Governor Lyle Brainard on Monday stressed the digital dollar case, saying a cryptocurrency backed by a central bank could provide a range of benefits.
Providing financial services to approximately 1 in 5 Americans considered “underbanked” is one of the benefits cited by Brainard in a conference speech presented by CoinDesk.
It cited safety of the Fed-backed system as well as efficiency improvements and cross-border payments, or transactions between people in different countries.
Brenard stressed the importance of moving cautiously, stating that the Kovid-19 epidemic has reinforced the need for a system in which the public has access to well-regulated digital funds at a broader level.
“The Federal Reserve is committed to ensuring that the public has access to safe, reliable and secure means of payment, including cash,” she said. “As part of this commitment, we should explore – and try to anticipate – the extent to which the needs and preferences of households and businesses can move toward digital payments over time.”