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While speaking at a virtual event organized by the Bank of International Settlements (BID), FOMC Chairman Jerome Powell said they are not in a mode of trying to make a decision yet on a central bank digital currency (CBDC).

“We don’t need to rush it or be first to the market,” Powell added. “We don’t want to destabilize the existing two-tiered system, we don’t want to compete with banks for funding.”

Market reaction

Market participants largely ignored these comments. The US Dollar Index, which tracks the USD’s performance against a basket of six major currencies, was last seen posting small daily losses at 91.85.