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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.
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.
- Such a report exploring these further was initially expected in September. Fed Chair Jerome Powell stressed on Sept. 22 that one was coming “soon.”
- 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.
STORY CONTINUES BELOW
Read more: CBDC Impact on Banking Sector Could Be Manageable: New BIS Report
UPDATE (OCT. 4, 10:54 UTC) Adds background.
Jamie Crawley
Jamie has been part of CoinDesk's news team since February 2021, focusing on breaking news, Bitcoin tech and protocols and crypto VC. He holds BTC, ETH and DOGE.
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