Fed Board Governor stressed the importance of CBDC in the USA

A central bank digital currency in the United States can increase financial stability, according to Lael Brainard

21.02.2022 - 13:15

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What’s new? The US Federal Reserve System (Fed) has not yet decided whether it will issue its own central bank digital currency or abandon this idea. Lael Brainard, the governor of the Federal Reserve, highlighted several reasons for starting to develop a digital currency. Brainard added that a CBDC in the United States can increase financial stability.

Information on the Fed’s website

What does Brainard say? She noted that the US dollar dominates international payments, so the state should launch a CBDC. However, she warned that if this does not happen, access to a safe government settlement asset will be lost. It would be prudent, she said, to examine whether there is a role for digital currency in maintaining the safe and efficient elements of a modern financial system.

“It is essential that policymakers, including the Federal Reserve, plan for the future of the payment system and consider the full range of possible options to bring forward the potential benefits of new technologies while safeguarding stability. A US CBDC may be one potential way to ensure that people around the world who use the dollar can continue to rely on the strength and safety of US currency to transact and conduct business in the digital financial system,” Brainard said.

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