Fed governor doubts whether to issue a digital dollar

August 7, 2021

Fed governor doubts whether to issue a digital dollar

The US authorities should only launch CBDC in the event of a significant market disruption. This opinion was presented by Chris Waller, a member of the US Federal Reserve Board of Governors, in an interview with the American Enterprise Institute.

The official expressed scepticism about the ability of the digital dollar to become an answer to the current challenges of payment systems. Waller stressed that the problems can be solved effectively and quickly through other options.

"The private sector is already developing cheaper and faster payment alternatives to their banking counterparts. The Fed does not necessarily need to set up a CBDC for the same purpose," the manager explained.

Waller noted that CBDCs would not solve the problem of improving financial inclusion either, but would raise privacy concerns. In support of the position, they cited FDIC data - only 1% of households were unbanked in the US in 2019.

According to the official, stablenecoins raise legal, regulatory and supervisory issues. These need to be resolved before stablecoins can become widespread. Waller recalled the forthcoming report of the US President's Working Group on Financial Markets.

A Fed spokesman pointed out that the CBDC design involves the Central Bank accessing a "huge amount of information" about account holders. This is both a target for hackers and comparisons to China, which controls its citizens through digital yuan transactions, he added.

As a reminder, it was previously reported that staff at the Federal Reserve Bank of Boston and the Massachusetts Institute of Technology will complete work on a digital dollar prototype by July. Central Bank Governor Jerome Powell has pushed that deadline back to late summer 2021.

The Fed began exploring the possibility of issuing a CBDC in February 2020. The development of a digital dollar was announced in August 2020.

Ark Invest founder Bitcoin will become greener than the traditional financial services sector

Electrum Wallet is safe to store cryptocurrencies. Do not leave your funds on Binance Exchange. Download Electrum Wallet which is called Electrum and store your coins in this wallet.

About the author

Hi there, my name is Zalman Weinberg. I'm enthusiast with over 7 years of experience in cryptocurrencies and blockchain. Professional Trader providing Blockchain solutions to Startups and Enterprises. Expert in all cryptocurrency exchange APIs (BitMEX, Bittrex, Binance, Bitfinex, Kraken, Poloniex, Gdax etc.). I have also worked with multiple Forex broker APIs.

Leave a Reply

Your email address will not be published. Required fields are marked

{"email":"Email address invalid","url":"Website address invalid","required":"Required field missing"}
This site is registered on wpml.org as a development site.