Yellen said that an official US digital currency could have “substantial benefits for the nation, consumers and businesses”.
Nigel Green, CEO of global financial advisory firm Devire Group, said digital currency is indispensable in the digital world we live in.
“When technology is driving our living, working, doing business and so much more, it makes sense that money runs on technology as well,” he said. “Furthermore, it must be remembered that Millennials – who are set to be the beneficiaries of the largest generational transfer of wealth ever raised on technology, are digital natives. As such, the future of money is undoubtedly also going to go digital.”
While most central banks are asked to assess the potential of their digital currencies, Green believes China will be the first large, industrialized nation to market with a digital yuan.
The US adoption of its own digital currency will be a historic moment, but Green says the likes of bitcoin will still have a place due to privacy concerns surrounding Fed-backed coins.