Fed to Launch CBDC Review as Early as This Week: Report

The U.S Federal Reserve is set to initiate a review of the risks and opportunities in introducing a central bank digital currency (CBDC) as early as this week, according to a report by the Wall Street Journal.

Officials at the Fed will release a paper soliciting public comment on the matter, the WSJ reported Monday.
A decision is unlikely to be taken quickly given the difference in opinion between Fed officials on the benefits and risks that a CBDC could offer.
Such a report exploring these further was initially expected in September. Fed Chair Jerome Powell stressed on Sept. 22 that one was coming “soon.”
However, the decision to launch a CBDC would only be made if there are “clear and tangible benefits that outweigh any costs and risks,” he said.
Powell referred to the development of a digital dollar as “critical work” last week during a Senate Banking Committee hearing, adding that it would require legislation from Congress in order to proceed.

UPDATE (OCT. 4, 10:54 UTC) Adds background.

DISCLOSURE

Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.

Jamie Crawley

Jamie Crawley is a CoinDesk news reporter based in London.

Follow @JamieCrawleyCD on Twitter

Learn more about Consensus 2024, CoinDesk’s longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.