The governors of the Federal Reserve see no reason to issue the digital currency of the central bank - regulation
The governors of the Federal Reserve see no reason to issue the digital currency of the central bank - regulation
at least three governors of the Federal Reserve have stated that they see no reason for the Fed to issue a digital central bank currency (CBDC). The FED is currently making a report on a digital dollar that is to be published in the near future.
fed governors doubt the need for digital dollars
The governor of the US Federal Reserve, Michelle Bowman, said last week that, given the security and efficiency of the US payment system, she does not see a major reason for the Fed to publish a digital currency of the US Federal Reserve. She said:
I'm not really sure whether I understand or see the business case for the creation.
The FED is currently creating a report in which the advantages and disadvantages of the output of a digital dollar are discussed. The report is expected to be published shortly.
Another governor of the Federal Reserve, who is skeptical about the output of a digital dollar through the Fed, is Randal Quarles. On October 20, he said at a conference of the Milken Institute that he did not understand the arguments for the issue of a digital central bank currency. Quartles, which will step down in December, said:
until someone answers the question, why, I do not understand why we would spend the enormous resources and the technological risk and the considerable disruption of the ongoing operation of the financial system that would be from the central bank by saying that we will provide this digital currency.
US Federal Researcher Christopher Waller also doubts that the Fed should spend a digital dollar. In October during a discussion organized by the Official Monetary and Financial Institute Forum (OMFIF) that a digital dollar would bring the FED into direct competition with commercial banks.
"With a digital central bank currency, you ask a very direct question. Should the central bank be more involved in the handling of payments for households and companies so that they can handle the banking system? This does a CBDC account," said Waller. "So should you compete with the banking system or not?" In August the FED-Gouverneer found:
I remain skeptical that a CBDC of the Federal Reserve would solve any major problem with which the US payment system is faced.
Do you think the Fed should publish a digital central bank currency (CBDC)? Let us know in the comment area below.
Bedy verification : Shutterstock, Pixabay, Wiki Commons
Kommentare (0)