Federal Reserve to Explore Central Bank Digital Currency

The Federal Reserve plans to publish this summer a discussion paper exploring the implications of issuing a U.S. central bank digital currency, Federal Reserve Chairman Jerome Powell said in a statement today.

The paper will complement Federal Reserve research that is already underway to understand how a central bank digital currency could improve the domestic payments system in serving the needs of households and businesses. “The design of a CBDC would raise important monetary policy, financial stability, consumer protection, legal, and privacy considerations and will require careful thought and analysis—including input from the public and elected officials,” Powell said.

Powell added that the Fed is also undertaking more technically oriented projects focused on specific tools and infrastructure of new digital payments mechanisms.