The US Federal Reserve governors do not consider the issuance of CBDCs to be necessary

At least three US Federal Reserve (Fed) governors have said they see no reason for the Fed to issue central bank digital currency (CBDC).

Governor Michelle Bowman mentioned last week that given the security and efficiency of the US payments system, there is no need to issue a CBDC.

The Fed is currently releasing a joint report discussing the pros and cons of spending a digital dollar, which is due to be released shortly.

Another governor who has also been skeptical about the Fed issuing a digital dollar is Randal Quarles. He said he did not understand the arguments for releasing a CBDC at a Milken Institute conference on October 20.

“Until someone gives me an answer, I still don’t understand why we are investing so much resources while exposing ourselves to significant technological risks and disruptions to our existing operations to deliver this digital currency.”

Governor Christopher Waller also wondered if the Fed should issue a digital dollar. He said in October that the digital dollar would push the Fed into direct competition with commercial banks.

“With a digital central bank currency, you are faced with a very direct question. Should the central bank be more involved in processing payments to households and businesses so that they can disrupt the banking system? That’s what CBDCs do. So should we compete with the banking system or not? ”

In August Waller stated:

“I remain skeptical that the Fed’s CBDC can solve all of the major problems in the US payments system.”

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