Federal Reserve governors see no reason to issue the Central Bank’s digital currency – the Bitcoin News Regulation

Federal Reserve governors see no reason to issue the Central Bank’s digital currency – the Bitcoin News Regulation

At least three Federal Reserve governors said they saw no reason for the Fed to issue a central bank digital currency (CBDC). The Fed is currently compiling a report on the digital dollar that will be released in the near future.

Fed governors doubt the need for a digital dollar

Federal Reserve Governor Michelle Bowman said last week that she did not see much reason for the Fed to issue the digital currency of the U.S. central bank given the security and efficiency of the U.S. payment system. She said:

I’m not quite sure I understand or see the business case for its creation.

The Fed is currently compiling a report discussing the pros and cons of issuing a digital dollar. The report is expected to be released soon.

Another Federal Reserve governor who is skeptical of the Fed issuing a digital dollar is Randal Quarles. He said at a conference of the Milken Institute on October 20 that he did not understand the arguments in favor of issuing the digital currency of the central bank. Quarles, who is due to resign in December, says:

Until someone answers the question why, I do not understand why we would devote a huge amount of resources and technological risk and a significant disruption to the current operation of the financial system that would come from the central bank, which says that we will provide this digital currency.

Federal Reserve Governor Christopher Waller also doubts the Fed should issue a digital dollar. He explained in October, during a discussion organized by the Official Forum of Monetary and Financial Institutions (OMFIF), that the digital dollar would put the Fed in direct competition with commercial banks.

“With the digital currency of the central bank, you are 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 bypass the banking system? That’s what a CBDC account does, ”Waller said. “So, should we compete with the banking system or not?” In August, the Fed governor noted:

I remain skeptical that the Federal Reserve’s CBDC would solve any major problem facing the U.S. payment system.

Do you think the Fed should issue a central bank digital currency (CBDC)? Let us know in the comments section below.

Image Credits: Shutterstock, Pixabay, Wiki Commons

Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or approval of any product, service or company. Bitcoin.com does not provide investment, tax, legal or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or allegedly caused by the use or reliance on any content, goods or services mentioned in this article.

(function(d, s, id) {
var js, fjs = d.getElementsByTagName(s)[0];
if (d.getElementById(id)) return;
js = d.createElement(s); js.id = id;
js.src=”https://connect.facebook.net/en_US/sdk.js#xfbml=1&version=v3.2″;
fjs.parentNode.insertBefore(js, fjs);
}(document, ‘script’, ‘facebook-jssdk’));



Source link

Leave a Reply