Treasury Secretary Janet Yellen called In an interview at the Reuters Next conference on Thursday (December 2), she has not yet decided whether or not the US Federal Reserve (Fed) should issue a digital bank currency central bank (CBDC).
Yellen said the decision would require broad consensus between Congress, the central bank and the White House. She believes more research is needed on the pros and cons of using CBDCs in the United States, including their impact on the banking system.
“I see CBDCs as advantages and disadvantages. And in my opinion it doesn’t exist yet. “
According to the Center for Geoeconomics of the Atlantic Council, 87 countries (responsible for more than 90% of global GDP) are currently studying CBDCs.
Governor Lael Brainard has urged the Fed to urgently develop a CBDC. In July, Brainard said it was impossible to understand why the US isn’t actively developing CBDCs when China and other countries are doing the same.
Yellen said the US Federal Reserve is expected to release a report shortly detailing its work on CBDCs. She added that the Fed understands that consensus is needed.
Yellen said, however, that the question of whether the Fed should develop a digital currency is still “seriously” discussed in the White House.
Several governors fail to see the benefits of the Fed issuing a digital dollar, including Michelle Bowman, Randal Quarles, and Christopher Waller.
In September, Fed chairman Jerome Powell shared an update on the advancement of digital dollar research. He insists the Fed doesn’t lag behind other countries on CBDCs.
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