Fed to Launch CBDC Review as Early as This Week: Report
Officials at the Fed are set to release a paper soliciting public comment on a central bank digital currency.
Oct 4, 2021 at 7:12 p.m. UTCUpdated May 11, 2023 at 6:37 p.m. UTC
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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.
- 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.
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Jamie Crawley is a CoinDesk news reporter based in London.