A report by Bloomberg on December 5 indicates the comments of Steven Mnuchin over digital dollar. According to him, he and Jerome Powell are not expecting the creation of a national digital currency in the United States.

Mnuchin was asked a question concerning the proposed Libra of Facebook, and he made the comments while a House Financial Services Committee hearing was ongoing in Washington. Mnuchin commented as follows:

“Chair Powell and I have discussed this — we both agree that in the near future, in the next five years, we see no need for the Fed to issue a digital currency.”

He continued that he is not against Libra, but it must fully comply with bank secrecy and Anti-Money Laundering regulations, and not utilized to finance terrorist.

In a letter from the Federal Reserve to French Hill and Bill Fosters around the middle of November, it was revealed that there is no current effort to develop a central bank digital currency (CBDC), but there has been an assessment and the agency is still evaluating the costs and merits of such an initiative.

According to Powell in the letter, the agency will tackle some legal issues as well as monetary and payments policies, financial stability, supervision and operational issues, and vulnerability to cyber-attacks, before issuing a digital currency.

Some senior financial regulators in the U.S. warned people concerning the supposed risks attached to stablecoins and cryptocurrencies, on December 4. They maintained the possibility of stablecoin adoption affecting the wider economy and the need for financial regulators to review every digital asset and the risks.