US Treasury Secretary Steven Mnuchin says he doesn’t expect the country to issue a digital currency any time soon. His remarks come as China’s central bank prepares to issue a “digital yuan”.
Mnuchin said he and Federal Reserve Chair Jerome Powell both agreed that there is no need for the Fed to issue a digital currency as the country has a very sophisticated system.
The People’s Bank of China has been working towards creating a digital currency.
Some experts believe it has the potential to become popular around the globe and rival the US dollar.
Earlier this year, social media giant Facebook announced plans to release a digital currency called Libra.
CEO Mark Zuckerberg has urged authorities to quickly approve the launch to counter China.
But the Treasury Department and the Fed remain cautious about the technology.
They’ve stressed the need to ensure that the currencies aren’t used for money laundering or financing terrorism.