5/3, 8:55 PM (Source: TeleTrader)
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Fed in 'early stages' on digital currency policy issues - Powell

The Chair of the Federal Reserve Jerome Powell stated on Monday that the Fed was in the "early stages" of working through policy issues surrounding a digital currency.

Answering a question regarding financial inclusion, Powell stated that in the United States there is around seven million or 5% of households that are currently unbanked and that while a benefit of digital currencies is greater financial inclusion, he believes that existing banking systems are sufficient to help bridge the gap within those households.

Powell also added that it is essential to "understand how a central bank's digital currency can communicate with the banking system," adding that the questions of competing for deposit payments and the influence on financial stability a digital currency can have need to be answered before it can be issued.

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