The US government and central bank have been working hard for a long time on the creation and launch of the digital dollar. By and large, they are about to achieve their aim. However, before the full integration of the digital dollar into the financial system, it must be approved by Congress. Besides, a number of amendments to existing legislation should be made before the adoption of the digital dollar as a means of payment, Federal Reserve Chairman Jerome Powell said.

The United States quickly joined the race to digitalize the national currency. Perhaps currently, the US is only one step behind China and Sweden. Preparations for the introduction of the digital dollar are in full swing. The Fed has already framed the overall concept of a digital dollar that would not undermine the private financial sector, Jerome Powell pinpointed during his speech at the Bank of International Settlements Innovation Summit (BIS). Later, in congressional testimony, Powell also called the digital dollar "a high priority project for the regulator." He added, "We are committed to solving the technology problems, and consulting very broadly with the public and very transparently with all interested constituencies whether we should do this."

As for the growing popularity of bitcoin, Powell noted that taking into account the highest volatility, bitcoin cannot be a full-fledged means of payment. What is more, bitcoin is not backed by anything. This is why the central bank’s interest in digital assets is not due to the latest burst in popularity for virtual assets.

"Bitcoin and other cryptocurrency assets are more of an asset for speculation, so they’re not particularly in use as a means of payment. It’s more a speculative asset. It’s essentially a substitute for gold rather than for the dollar," he concluded.