President of the Federal Bank of Philadelphia, Patrick Harker believes digital currencies of Central banks are inevitable.
The president although believes that the United States of America should not lead the Way, pertaining to the dollar being the world’s reserve currency.
“It is inevitable… I think it is better for us to start getting our hands around it.” Patrick Harker, President of Federal Bank of Philadelphia
Central Bank digital currencies vs Libra
The president made the comment when asked a question on the decision of Federal Reserve’s to develop an instant payments system known as FedNow. The announcement of the instant payment system was made during August.
“I am looking at the next five years after that. What comes next? I do think it is something around digital currency.”
While banks at the Federal Advisory Council have told the Federal Reserve that Facebook’s Libra will create a “shadow banking system”.
It will potentially decline in demand-deposit accounts and bank payment volumes.