Her comments arrive almost a month after President Joe Biden Signed a presidential directive Get an overview of the Federal Digital Asset Strategy aimed at protecting investors and driving innovation in growing asset classes.
Signed on 9 March, the order establishes national policies for digital assets across six areas. Financial stability; Illegal finances; US leadership in the global financial system and economic competitiveness. Financial inclusion; Responsible innovation.
In addition, the order directs the federal government to investigate the Central Bank Digital Currency of the United States, or CBDC, the digital form of fiat currency.
In his speech, Mr. Jellen outlined the questions about the CBDC that the government is investigating. For example, how to manage risks related to national security and financial crime and include privacy protection.
“We do not yet know the conclusions we will reach, but it is clear that the issuance of the CBDC is likely to present key design and engineering challenges that require years of development rather than months. We need to do that, “says Yellen.
The Federal Reserve System in January Pros and cons of issuing CBDC..
Yellen said there are broad views on digital assets that disagree on how the government should regulate asset classes.
Yellen’s view is that “the role of government is responsible innovation, that is, innovation that works for all Americans, protects national security interests and the planet, and contributes to economic competitiveness and growth. To secure it. ” “Such responsible innovation needs to reflect thoughtful public-private dialogue and take into account many lessons learned throughout the history of finance.”