The Fed Will Not Develop a Digital Currency, But Remains Interested In Blockchain

The underlying technology that powers digital currency remains more interesting to the Federal Reserve than the development of digital currency, according to comments made by John Williams, president of the San Francisco Federal Reserve Bank.

The Fed is actively researching blockchain and distributed ledger technology, Williams said yesterday when asked about his thoughts on the matter at an economic luncheon in Phoenix, Arizona.

While central banks have expressed interest in digital currencies such as bitcoin — and some might consider adopting them as official money, said Williams — the Fed is keeping its focus on blockchain.

“Right now, the Federal Reserve is not developing its own digital currency,” Williams said.

Williams’ comments come after the digital currency bitcoin hit a long-expected high of $10,000 yesterday, only to fall more than 20% down by the end of the day. The currency is currently valued at $9,281.34 as of 9:30am today.

Read more at Reuters and PYMNTs.

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Grace Noto is Associate Editor of Bank Innovation. She has an MA from the University of Essex, as well as BA in English and a BA in Journalism from SUNY New Paltz. Prior to joining Bank Innovation in the summer of 2016, she worked on Electronic Products Magazine, an online publication surrounding technology and computer engineering, and has worked for other publications, including the Poughkeepsie Journal. She also writes in her spare time, and really needs more hobbies.

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