(Washington) The US central bank chief is more concerned about the risk of a large-scale cyberattack than he is about a global financial crisis similar to the one that occurred in 2008.
Jerome Powell said in the presentation that the risk of a 2008-like crisis with the need for government bailouts for banks was “very low”. 60 minutes On the American CBS News.
“The world is changing. The world is evolving. The dangers too. I would like to say that the danger that we see the most is the dangers of the Internet,” he said, adding that this is a common concern of many governments, and large private companies, especially financial ones. And all of these players invest more than others against these risks.
Jerome Powell noted that the Federal Reserve is looking at different types of scenarios.
There are scenarios in it […] The propulsion system could not work. Payments cannot be made. There are scenarios where a large financial institution loses its ability to track the payments that they make and things like that.
The Federal Reserve is also studying the possibility of shutting down a portion or even a large portion of the financial system.
“So we spend a lot of time, effort and money to protect against it,” said the head of the powerful organization, noting that cyber attacks target large organizations “every day”.
Jerome Powell was also asked about the possibility of creating a digital dollar as China last month became the first major global economic power to unveil a cryptocurrency.
He indicated that the Federal Reserve is currently evaluating this possibility.
We think it is our duty to understand. How will that work? What will the characteristics be? “, It is to explain.
He also noted that the Fed is developing software and even designing the appearance of a digital US dollar, but that the final decision to release it will only be made after its impact is fully understood.
The dollar is the “reserve currency in the world. The dollar is very important.” […] We don’t need to be the first to do this. We want to do it right. And he insisted that this is what we will do.
Last October, Jerome Powell had already indicated that the US was considering issuing its cryptocurrency, but then warned that a full assessment of the benefits and risks would take time.
Treasury Secretary Janet Yellen recently said in an interview with The New York Times on February 22 that creating a digital dollar could benefit the US economy.
It then indicated the need for central banks to properly assess related issues, particularly consumer protection.
On the US economy, Jerome Powell estimated that it is now “at an inflection point”: growth and employment will accelerate in the coming months.
But he insisted again that the COVID-19 pandemic remains a threat.