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...

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