The Federal Reserve Is Looking Very Closely At Issuing Central Bank Digital Currency (CBDC)

 Although no decisions have been made, Federal Reserve Chairman Jerome Powell explained Tuesday during a panel discussion on digital finance hosted by The Bank of France that they are “looking at it very carefully.” He’s of course talking about a Central Bank Digital Currency (CBDC).

He expressed that the Federal Reserve is currently evaluating both “the policy issues and the technology issues, and we are doing that with a very broad scope.”

Earlier this year, The Federal Reserve Board issued a discussion paper that examines the pros and cons of a U.S. CBDC.

“CBDC is generally defined as a digital liability of a central bank that is widely available to the general public. Today in the United States, Federal Reserve notes (i.e., physical currency) are the only type of central bank money available to the general public. Like existing forms of money, a CBDC would enable the general public to make digital payments. As a liability of the Federal Reserve, however, a CBDC would be the safest digital asset available to the general public, with no associated credit or liquidity risk.”...<<<Read More>>>...