At least 3 Federal Reserve guvs have actually stated that they do not see a factor for the Fed to release a reserve bank digital currency (CBDC). The Fed is presently creating a report on a digital dollar to be launched in the future.
Fed Governors Doubt Need for Digital Dollar
Federal Reserve Governor Michelle Bowman stated recently that she does not see much of a factor for the Fed to release a U.S. reserve bank digital currency provided the security and performance of the U.S. payment system. She stated:
I’m not actually sure that I comprehend or see business case for developing it.
The Fed is presently creating a report going over the benefits and drawbacks of releasing a digital dollar. The report is anticipated to be launched quickly.
Another Federal Reserve guv who is doubtful about the Fed releasing a digital dollar is Randal Quarles. He stated on Oct. 20 at a Milken Institute conference that he does not comprehend the arguments in favor of releasing a reserve bank digital currency. Quarles, who is set to resign in December, suggested:
Until someone addresses me the concern why, I don’t comprehend why we would commit the huge quantity of resources and the technological threat and the considerable interruption to the existing operation of the monetary system that would originate from the reserve bank stating we are going to supply this digital currency.
Federal Reserve Governor Christopher Waller likewise questions whether the Fed ought to release a digital dollar. He described in October throughout a conversation hosted by the Official Monetary and Financial Institutions Forum (OMFIF) that a digital dollar would put the Fed in direct competitors with business banks.
“With a central bank digital currency, you’re asking a very direct question. Should the central bank be more involved in processing payments for households and firms in a way that allows them to circumvent the banking system? That is what a CBDC account is doing,” Waller stated. “So, should you compete with the banking system or not?” In August, the Fed guv kept in mind:
I stay doubtful that a Federal Reserve CBDC would resolve any significant issue facing the U.S. payment system.
Do you believe the Fed should release a reserve bank digital currency (CBDC)? Let us understand in the remarks area listed below.
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