For central bank digital currencies to be a reliable means of payment, central banks should address the risks of interruptions or disruptions and ensure integrity and confidentiality, according to a report by the Bank for International Settlements.
Stablecoins and other digital assets pose risks to consumers and the U.S. banking system, so the providers of those services should be held to the same standards as banks, Federal Reserve Governor Michelle Bowman said.
No one has provided a satisfactory answer about the need for a central bank digital currency, Federal Reserve Governor Christopher Waller said.
The House Financial Services Committee advanced legislation that would increase congressional oversight of the FinCEN and prohibit the Federal Reserve from issuing a central bank digital currency.
A central bank digital currency is unnecessary in the U.S. and would present unacceptable risks and costs to the financial system, ABA said in comments to Congress.
The Federal Reserve is “a long way” from deciding whether to proceed with a central bank digital currency and would only do so with clear support from the executive branch and authorizing legislation from Congress, Fed Vice Chairman for Supervision Michael Barr said
A survey of 86 central banks found that most respondents are engaged in work concerning central bank digital currencies, and uncertainty is fading about their likelihood to issue CBDCs in the near future.
The Bank for International Settlements released a special chapter of its upcoming Annual Economic Report 2023 that lays out a “blueprint” for a future monetary system underpinned by central bank digital currency.
Most Americans have not formed an opinion on whether the Federal Reserve should offer a central bank digital currency, but among those that have, an overwhelming majority oppose it, according to a recent survey by the Cato Institute.
The adoption of the central bank digital currency poses many risks and challenges, including the risk that it would cannibalize rather than complement services provided by the U.S. banking system, Federal Reserve Governor Michelle Bowman said.