The payments landscape for community banks is changing rapidly as traditional payments converge with new instant payment systems and emerging cryptocurrencies. It is critical for Community Banks to maintain awareness of developments in the payments space to assess new opportunities, mitigate risks, and ensure that their payment strategy aligns with overall business plans.
Federal Reserve Chairman Jerome Powell said the economy is at an “inflection point” and could experience rapid growth upwards of 6 percent or 7 percent this year in an interview on CBS’ 60 Minutes.
Powell also said that a rate increase this year is “highly unlikely” and noted the Fed’s involvement in a research and development project to study digital dollars to gain an “understanding [of] the technology and the possibilities so that you can really address the policy issues.”
More: Powell also said that the central bank is investigating whether losses borne by large banks related to the meltdown of over-leveraged investment fund Archegos Capital were the result of a risk management failure.
Related: ICBA’s recent blog post offers a primer on central bank digital currencies, as part of a new series on digital dollars. The blog also distinguishes CBDC from other types of digital assets, including stablecoins and other cryptocurrencies.