Many expect that a time could soon come when key bank digital currencies, or CBDCs, supersede physical dollars one time and for all. Comments from United States Federal Reserve Chairman Jerome Powell, nonetheless, indicate that this may not be the example.

The chairman's comments were filmed and later shown at an event in Switzerland on Thursday, co-ordinate to an article from Bloomberg. The Committee on Payments and Marketplace Infrastructures put on the effect. In his talk, Powell mentioned that the U.S. fundamental bank and six other central banks collaboratively put together a report in conjunction with the Bank for International Settlements. The report weighed the viability of CBDCs viability in relation to governmental goals.

Powell added, as per Bloomberg's reporting:

"Relevant to today's topic, ane of the three central principles highlighted in the report is that a CBDC needs to coexist with greenbacks and other types of money in a flexible and innovative payment system."

Across the board, countries have approached CBDCs differently. Some nations, such as People's republic of china, have raced toward creating a CBDC. The Commonwealth of the bahamas unveiled its CBDC, the Sand Dollar, in the fall of 2020. The U.S., even so, has ridden a slower train, prioritizing quality over speed — although comments from Powell in early 2021 emphasized the eventual importance of a CBDC.

In his contempo comments, Powell explained, as per Bloomberg's reporting:

"The Covid crisis has brought into even sharper focus the need to accost the limitations of our current arrangements for cross-border payments. [...] And every bit this conference amply demonstrates, despite the challenges of this last yr, nosotros nonetheless have been able to make of import progress."

COVID-nineteen has spurred a number of economic changes since prevention measures were enacted in March 2020. Just over ane twelvemonth ago, Bitcoin crashed beneath $4,000. The asset has since rallied to prices over $60,000.