US Lawmakers Ask Fed to Consider Developing ‘National Digital Currency’

UPDATE (Oct. 4, 2019, 20:50 UTC): A spokesperson for the Federal Reserve told CoinDesk, “We have received the letter and plan to respond.”

Two U.S. lawmakers want the Federal Reserve to consider creating a digital dollar.

In a letter sent to Federal Reserve Chairman Jerome Powell, Rep. French Hill (R-Ark.) and Rep. Bill Foster (D-Ill.) outline concerns they have about risks to the U.S. dollar if another country or private company creates a widely used cryptocurrency, and ask whether the central bank is looking into creating its own version.

First reported by Bloomberg Law, the letter details how the Fed has the right to create and manage U.S. currency policy.

“The Federal Reserve, as the central bank of the United States, has the ability and the natural role to develop a national digital currency,” the Congressmen wrote, adding:

“We are concerned that the primacy of the U.S. Dollar could be in long-term jeopardy from wide adoption of digital fiat currencies….