Federal Reserve Governor Christopher Waller opposes the introduction of a CBDC by the US Fed.
In a statement on Friday, Waller explained that CBDC is not necessary and that the factors supporting it are “not technology”.
“Factors supporting the dollar’s primacy are not technology, but include ample supply, a liquid market for U.S. Treasury securities and other debt, as well as long-term stability. length of the American economy and political system,” said Waller at Harvard University. “No other country can compare to the United States on those fronts, and a CBDC is not going to change that.”
Advocates of a Fed-issued CBDC claim that it will tackle issues like digital theft and fraud, however, Waller doubts these arguments.
“Meaningful efforts are underway at the international level to improve cross-border payments in many ways, with the majority of these improvements coming not from CBDCs but improvements to with existing payment systems”.
US Treasury Secretary Janet Yellen recently said that there is “certain value” to Congress in developing a Central Bank Digital Currency (CBDC).
No official ruling has yet been made on the establishment of a CBDC Fed in the US. Other countries have begun experimenting with the idea of a digital currency, such as China with its digital renminbi.
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