The Federal Reserve to release paper on U.S. central bank cryptocurrency this summer

With China working towards a digital Yuan cryptocurrency, it appears that United States officials are considering a digital dollar. Here's what we know.

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The cryptocurrency market has been extremely volatile in recent weeks with Bitcoin, Ethereum, and Dogecoin experiencing huge selloffs, followed by a rebound in coin prices. Federal Reserve Chairman Jerome Powell issued a statement and video today announcing a paper will be published this summer regarding the Fed's take on central bank digital currency. Today's press release doesn't confirm a US Dollar cryptocurrency is coming, but it is a signal that the Federal Reserve is considering the future of money in the United States.

Here's the full transcript of Federal Reserve Chairman Jerome Powell's statement on digital currency:

With news that China is exploring a digital yuan cryptocurrency, it makes sense to see the United States investigate a digital dollar. The upcoming Federal Reserve research paper is a good first step for the country, as some currency traders have suggested that the US Dollar is at risk of losing its global reserve currency status. As with most things the United States government does, this may be too late. The existing decentralized finance (DeFi) movement is well underway with massive market capitalizations for Bitcoin, Ethereum, and even Dogecoin.

Dogecoin is one of the best performing assets in the last year.
Dogecoin is one of the best performing assets in the last year.

Perhaps a central bank digital currency (CBDC) will be less volatile than its DeFi counterparts, but it is all too early to speculate. Today's press release is not a confirmation of an upcoming US Dollar-based digital cryptocurrency, and the Fed clearly doesn't have the dank meme experience needed to launch a digital currency in the 2020s. 

What do you think of cryptocurrency? Do you hate these articles? Do you love them? Would you buy a digital dollar cryptocurrency issued by the Federal Reserve? Let us know in the comments section. It makes us very happy to hear back from our users.

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