Judy Shelton, an adviser nominated by Trump to the Fed last year argues that the United States “should not fall asleep on its laurels” in relation to the digital dollar.
Judy Shelton, President Trump’s candidate for the Federal Reserve Board (EDF), said yesterday at a Senate confirmation hearing that digitizing the US dollar could help maintain the rise of the currency in global trade.
Shelton also said that the United States needs innovation in financial technology to stay ahead of other countries.
It should be noted that Shelton is an economic advisor to President Donald Trump. He has been well known in public opinion for his defense of a return to the gold standard and for his criticism of the Federal Reserve. Trump announced on July 2, 2019 that he would nominate her for the Federal Reserve, and his nomination is currently pending in the Senate.
Judy Shelton: work for the digital dollar
Specifically when Republican Senator Tom Cotton asked him how he would address the need for a digital dollar, Shelton said “it is an extremely important discussion and we are forced to think about that.” He added about the dollar:
Yes, it is a dominant reserve currency, but we cannot rest on our laurels in that regard. Rival nations are working very diligently to have an alternative to the dollar. I think it is very important to get ahead of the curve to ensure that the dollar continues to offer the best currency in the world.
While in the United States the issue of the digital dollar is still in debate, other world powers are working on their own Central Bank cryptocurrencies, with considerable progress. Such is the case of China, with its digital yuan, and Japan, with its digital yen. As it has been widely disseminated, private companies are also doing it.
The digital dollar decision is taking too long
The US seems to work at a slower pace than other nations, although there are already some actions in favor of a digital dollar. For example, at the end of January, former officials of the Commodity Futures Trading Commission (CFTC) reported on the creation of a non-profit organization to design proposals for a digital dollar. And this week, the president of the Fed, Jerome Powell, told lawmakers that Libra was “a wake-up call” for the central bank, and stressed that his investigation was in the early stages. He also supported the need for cryptocurrencies based on privacy.
Similarly, in December last year, US Treasury Secretary Steven Mnuchin said that he and Federal Reserve President (FED) Jerome Powell do not expect the US to create its own digital currency in five years.