long awaited FED The CBDC (Central Bank digital currency) report has finally been released.
FED Chairman Powell stated that the report was prepared at the last FED meeting, but its publication was delayed due to the interference of different issues.
In the statement published on the FED’s website, it was stated that the report in question was the first step of the discussion on digital currencies.
It was underlined that the report does not include a policy assessment for or against digital currencies.
The following statements were made by the Fed:
“This article examines the pros and cons of a potential US central bank digital currency, or CBDC, and is the first step in a discussion on whether and how a CBDC can improve the secure and efficient local payment system.
The report invites the public to comment. More importantly, the article does not support any policy conclusions.
The article summarizes the current state of the local payment system and presents stablecoins and other cryptocurrency It discusses different digital payment methods and asset types, including currency units. It concludes by examining the potential benefits and risks of a CBDC and identifies specific policy considerations.
While a CBDC can offer a secure, digital payment option for households and businesses as the payment system continues to evolve, resulting in faster payment options across countries, it can also have downsides.
They include how to ensure that a CBDC complements existing payment instruments as well as maintains monetary and financial stability.
Any central bank digital currency (CBDC) is not intended to replace cash.
Other key policy issues include how to protect citizens’ privacy and protect the ability to combat illegal financing. The article discusses these and other factors in more detail.
To fully assess a potential CBDC, the article “Money and Payments: The US Dollar in the Age of Digital Transformation” seeks public comment on more than 20 questions. Comments will be accepted for 120 days”