Fed Looking Very Carefully at Issuing a Digital Dollar: Powell

The transcript discusses the potential issuance of a digital dollar by central banks, highlighting the technological and policy challenges involved. It emphasizes the importance of getting the implementation right, given the U.S.'s role as the world's reserve currency. The Federal Reserve is actively researching this, including a partnership with MIT, to explore the benefits such as financial inclusion, while being cautious of potential risks like destabilizing the banking system.

What is the Federal Reserve's approach to researching the digital dollar?

What potential risks should be considered when creating a digital dollar?