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The Fed is working hard to study digital currencies

The exploration of digital currencies by central banks around the world is also in full swing. A study published by the Bank for International Settlements (BIS) in January 2020 showed that as of 2019, among the central banks of 66 countries around the world, 80% of central banks have begun to research and test digital currencies, an increase of 10 percentage points from 2018. Among them, 40% of central banks have entered the experimental phase, and 10% of central banks are also in the digital currency testing phase.

On April 5 this year, the Bank of Japan announced that it will conduct the first phase of confirmatory testing on the central bank’s digital currency from that day, focusing on the technical feasibility analysis of core functions such as issuance, circulation, and exchange. The first phase of testing is expected It will run until March 2022 for a one-year period.

On April 12, Fed Chairman Powell also publicly stated that the Fed is working hard to study digital currencies, but has not yet made a decision. In addition, the central banks of Thailand, Sweden, and Russia all released test plans in early April.

According to analysis by industry insiders, the attitude of many countries, including the United States, towards central bank digital currencies has changed from conservative to positive. This change is due to the impact of non-contact transactions brought about by the epidemic last year, highlighting the advantages of digital currencies; in addition, Countries do not want to lag behind in global central bank currency competition.