Fed chair denies the possible anonymity of the digital dollar

In this, Jerome Powell stressed that the asset must ensure the privacy of transactions

28.09.2022 - 08:15

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What’s new? The US Federal Reserve System (Fed) Chair Jerome Powell said that the agency has not yet made a final decision on the launch of the digital dollar. In this, the asset will not provide the option to conduct anonymous transactions. Powell voiced this information as part of his speech at the Banque de France international conference on the opportunities and challenges of financial tokenization.

The full video of the conference

What other statements have been made? According to Powell, the US authorities should focus on assessing policy and technological issues, as well as building public confidence in the analysis and conclusions. The Fed chair stressed that the current downturn in the crypto market has given authorities more time to find and address weaknesses in the regulation of the crypto industry.

If the digital dollar is adopted, the asset must ensure privacy but at the same time require identity verification and be compatible across platforms, Powell stressed.

Earlier, the Fed called the growth of the DeFi market a threat to financial stability. The researchers said that the main threats are related to the lack of clear rules regulating the industry. The Fed stressed that at the moment the authorities do not have the necessary tools to enforce the laws in the DeFi market.

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