In the digital dollar has sparked heated debate, the Federal Reserve Board (Fed) Chairman Ball stood up and shouted, announcing that the Fed will publish a relevant research report, but also to publicly solicit public opinion to assess whether the United States will launch a central bank digital currency (CBDC) in the future.
Bauer said in a statement on the 20th: “For this important issue, the Fed is committed to consulting widely before making a decision, including whether to develop a U.S. version of CBDC and by what means. To brainstorm, the Fed will publish a discussion document this summer outlining our current thinking on digital payments, with a particular focus on the benefits and risks associated with CBDC in the U.S. environment.”
The statement also underscores Ball’s personal style of seeking consensus on the topic, and seeking outside input has always been a hallmark of Ball’s leadership.
The digital dollar has been a technology initiative of the Associated Bank of Boston.
Bauer also said he hopes the Fed will take a leadership role in setting international standards. Central banks around the world are pushing for digital currencies, especially the People’s Bank of China, which may have a lead in setting international standards, in part because they have real-world experience.
The key question facing Bauer and other Fed officials is the extent to which such technology can be integrated into the current U.S. banking system, which already offers a range of electronic payment channels.
Our primary focus is on whether and how CBDC can be improved on a secure, effective, dynamic and efficient U.S. domestic payment system,” Bauer said. We believe the focus is on any form of CBDC that complements the function of cash and current private digital forms of dollars (such as commercial bank deposits), not replaces them.”
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