Powell Unconcerned If Another Country Gets Digital Currency First

Q: What are the risks of the Fed moving too slow on digital currency?

- A: We feel an obligation to understand the technology and all of the policy issues well. CenBank digital currencies are now possible.

• We need to understand whether that's something that would be a good thing for the people that we serve. How would it work in our system? We are engaged in a serious program to understand both the technology and the policy issues.
• We're the world's reserve currency. That means that the dollar is used in transactions all around the world far more than any other currency. [lists multiple reasons why USD is the reserve currency].
• I'm less concerned that another country might have a digital currency first. I'm really concerned about getting it right. The currency that's being used in China is not one that would work here. It's one that allows the government to see every payment that's used in realtime. It's more to do with things happening within their own financial system than it is to do with the global competition.