The governor of the U.S. Central Bank ruled in an interview that cyber attacks are one of the biggest risks to global finance.
FIs he worried that hackers will undermine the economic stability of the planet? The governor of the US Central Bank is more worried about the risk of large-scale cyber attacks than the global financial crisis like in 2008. Crisis risks similar to those in 2008 require the US government to bail out banks. Jerome Powell (Jerome Powell) said in a 60-minute program broadcast on the CBS News channel in the United States that governments are “very, very weak.”
“The world is changing. The world is developing. There are risks. I would say that the risk we are most concerned about is cyber risk,” he said, adding that this is the common concern of many governments, large private companies, and especially financial companies. The problem. All these participants use their largest investments for this risk.
Jerome Powell pointed out that the Federal Reserve (Fed) is studying different types of situations. “In some cases (…) the payment system does not work. Payments cannot be made. In some cases, large financial institutions will lose the ability to track their payments, and so on.
The Fed also considered the possibility of partial or even major closures of the financial system. The boss of a powerful organization said: “Therefore, we have to spend a lot of time, energy and money to prevent this situation.” He recalled that cyber attacks were targeted at large organizations “every day”.
Jerome Powell (Jerome Powell) was also asked about the possibility of creating a digital dollar, as China became the first major global economic power to launch a cryptocurrency last month. He pointed out that the Fed is currently evaluating this possibility. “We believe that understanding is our responsibility. How will that work? What are the characteristics?”, he explained.
He also said that the Federal Reserve is developing software and even designing the appearance of the digital dollar, but it must fully understand its impact before making the final decision to release the currency. The dollar is “the world’s reserve currency. The dollar is so important… We don’t have to be the first to do this. We want to do the right thing. He insisted that this is what we are going to do.”
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In October of last year, Jerome Powell (Jerome Powell) had stated that the United States was considering issuing its cryptocurrency, but then he warned that it would take time for a full assessment of the benefits and risks. Secretary of the Treasury Janet Yellen (Janet Yellen) recently said in an interview with the Financial Times that the creation of a digital dollar can benefit the US economy. New York Times Released on February 22. Then she mentioned that the central bank needs to properly evaluate related issues, especially the protection of consumers.
Regarding the US economy, Jerome Powell estimates that it is now at an “inflection point”: growth and employment will accelerate in the coming months. But he again insisted that the Covid-19 pandemic continues to pose a danger.