Federal Reserve Governor Christopher Waller has said he is not very supportive of the Fed issuing a central bank digital currency (CBDC). “It’s just a checking account with the Fed,” the governor said. Federal Reserve Chairman Jerome Powell recently said the central bank had not decided whether to issue a digital dollar.
Fed Governor Skeptical of CBDC
Federal Reserve Governor Christopher Waller shared his views on central bank digital currencies (CBDCs) at the Money 20/20 conference in Las Vegas on Tuesday. Regarding the Federal Reserve issuing a digital dollar, he was quoted as telling Bloomberg:
It’s a Fed checking account. I’m not a big fan of it, but I’m open to having someone convince me that this is really worth it.
Noting that many countries, including China, are already working on launching their own CBDCs, some argue that a Fed-backed digital currency will help ensure the dominance of the US dollar.
The People’s Bank of China (PBOC) is actively testing a CBDC. In September, the central bank of China expansion Digital Renminbi test area. This month, the PBOC issued a statement on trading with central bank digital currencies. Beyond 100 billion yuan ($13.9 billion) as of August 31.
It is not clear why China would give its citizens People’s Bank of China checking accounts, and why it would undermine the role of dollar reserves in the global payment system.
The Federal Reserve outlined its digital dollar initiative in January. report Entitled “Money and Payments: The US Dollar in the Age of Digital Transformation,” it calls it “the first step in a public debate between the Federal Reserve and stakeholders.”
However, the U.S. Central Bank has yet to decide whether to issue a digital dollar. Fed Chairman Jerome Powell Said September: “We have not made a decision to proceed and do not think we will make that decision for some time.” “We believe this is a process of at least several years, working to build public confidence in our analysis and final conclusions.” Powell also said the decision to issue a digital dollar will require approval from both the executive branch and parliament.
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