Yellen Excerpt: Fed Not Seriously Considering Digital Currency

     WASHINGTON (MNI) - The following is a response of Federal Reserve Chairman

Janet Yellen to a question from a reporter at her press conference following

Wednesday's Federal Open Market Committee meeting.

Question:

     William Dudley of the New York fed said that the fed is exploring the idea

of potentially having its own cryptocurrency or digital currency. What use do

you see a cryptocurrency could have for the fed and do you see the potential of

a cryptocurrency that might be considered legal tender? 

Yellen:

     So, I want to distinguish carefully between digital currency and

cryptocurrency. There is a discussion going on amongst central bankers about the

potential merits of adopting a central bank itself adopting a digital currency.

There might even be a central banker or two around the globe that might go in

that direction. 

     But I really want to caution that this is not something the Federal Reserve

is seriously considering at this stage, while we are looking at research on this

topic. There are, I think, to my mind, limited benefits from introducing it, a

limited need for it, and some substantial concerns. And so I would really doubt

that the Federal Reserve would soon go in that direction. But it is something

that central banks are looking at to see if there could be benefits from doing

it.

--MNI Washington Bureau; +1 202-371-2121; email: holly.stokes@marketnews.com

[TOPICS: MMUFE$,M$U$$$]