There have been numerous rumors regarding a digital dollar. Although it has not been created just yet, the Federal Reserve isn’t giving up on the idea just yet.
Those are the findings by Federal Reserve Governor Lael Brainard herself.
A Digital Dollar might not be the Answer
She thinks pursuing a digital dollar is still worth it, despite some logistical issues to overcome along the way.
Moreover, Brainard is convinced the Dollar will continue to play a role of importance.
While that may be the case short-term, things may look very different in a few years from today.
Creating a digital dollar in the form of a CBDC will not be an easy feat either.
It is not just a matter of creating a new database with numbers that need to be updated.
There needs to be ample infrastructure and participation to make the most of this concept at any given time.
For now, the Federal Reserve is seemingly in the process of researching and experimenting with distributed ledger technologies.
What that work will lead to eventually, has yet to be determined.
So far, several core questions remain unanswered.
It is not necessarily a cheaper and more convenient solution.
Nor is the digital dollar something every bank is willing to embrace all of a sudden.