The Treasury Department will form an interagency working group to explore the benefits, risks and potential use cases for a central bank digital currency, Undersecretary of Domestic Finance Nellie Liang announced this week.
Crypto is still an outlier in the product line for many banks. But a few have made big commitments.
The Federal Reserve Bank of New York today published research demonstrating how a wholesale central bank digital currency could deliver significantly faster cross-border transactions.
Waller is “highly skeptical” that there is a compelling need for the Fed to create a central bank digital currency.
Current banking conditions remain “mostly stable, but there are concerns over the longer term given current economic conditions,” members of the Federal Reserve’s CDIAC said during a meeting that took place earlier this year, according to newly published minutes.
As U.S. policymakers consider how to regulate digital asset technologies, ABA called on them to “remain vigilant and deliberate” to “ensure that our regulatory environment supports innovation rather than overregulating or replacing private sector innovators” in a comment letter to the Commerce Department.
According to ABA, at present, a U.S. CBDC doesn’t solve a specific financial problem or respond to a pressing economic need.
In a special bonus episode of the ABA Banking Journal Podcast, ABA’s Rob Morgan digs into the association’s comments on the Federal Reserve’s discussion paper on central bank digital currencies.