Fed issues discussion paper and asks for feedback on digital currency

No outcome favoured

James Baxter-Derrington
clock • 1 min read

The Federal Reserve released a discussion paper on Thursday (20 January) examining the pros and cons of issuing a US central bank digital currency (CBDC).

A summary of the current state of domestic payments is included in the paper alongside a discussion of the variety of digital payment methods and assets that have emerged, including stablecoins and other cryptocurrencies. It highlights that while money has been long held and transferred in digital forms, such as bank accounts and online transactions, the liabilities rest with private entities, such as private banks, while a CBDC would be the liability of the Fed. The paper, which does not come down on either side of the fence, highlights that while such a shift may result in faster pa...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Investment

Rathbones looks for growth after year of internal focus during Investec merger

Rathbones looks for growth after year of internal focus during Investec merger

Growth in funds under management and administration to £115.6bn

Eve Maddock-Jones
clock 15 January 2026 • 3 min read
Brooks Macdonald returns to positive flows in Q2

Brooks Macdonald returns to positive flows in Q2

Funds under management/advice now top £20bn

Jenna Brown
clock 15 January 2026 • 2 min read
PA Awards 2026: Multi-asset shortlists revealed

PA Awards 2026: Multi-asset shortlists revealed

Championing excellence

Professional Adviser
clock 14 January 2026 • 2 min read