China’s rush to develop its digital yuan will not push the U.S. into a digital currency race, the Federal Reserve’s chairman repeated on Wednesday.
Speaking after the Fed’s latest policy meeting, Jerome Powell reiterated previous statements that it was better to “get it right” than be first when it comes to a developing a central bank digital currency (CBDC). Powell was adamant that China’s approach was not the one the U.S. should be taking.
“Far more important to get it right than it is to do it fast,” said Powell. “The currency that’s being used in China is not one that would work here. It’s one that really allows the government to see every payment for which it is used in real time.”
Instead, the U.S. is biding its time to see whether a CBDC is something that would be a “good thing for the people that we serve” and ensure it is the right fit for those who rely on the dollar, said Powell.
China has been developing its CBDC with notable success, having completed various trials in an open lottery system gifting thousands of participants the opportunity to shop and experiment with the digital yuan.