Like many other central banks – and other stakeholders such as the British House of Lords – the Federal Reserve has been studying the opportunity and feasibility of a digital Monetary unit of the United States of America, and a number of other countries e.g. Australia, Canada and New Zealand. More. According to the Atlantic Council CBDC tracker, CBDCs have been launched in 9 countries, including the Bahamas’ sand dollar, the Nigerian e-Naira launched in October 2021, and DCash launched in 7 of the eight countries of the Eastern Caribbean Central Bank. Another 14 countries are currently running pilots, including Anguilla, China, Jamaica, Hong Kong, Lithuania, Malaysia, Saudi Arabia, Singapore, South Africa, South Korea, Sweden, Thailand, and the United Arab Emirates.
The long-awaited discussion paper makes no policy recommendations and offers no clear signal of whether the Fed will effectively launch a form of CBDC. It states that “The Federal Reserve does not intend to proceed with issuance of a CBDC without clear support from the executive branch and from Congress, ideally in the form of a specific authorizing law.”
The See Banknote paper. More does summarise some of the critical objectives of a future digital dollar. This includes:
The paper also provides some high-level design features of a CBDC.
The Fed calls for public comments on the CBDC over the next 120 days. No decisions have been made about how a digital The money used in a particular country at a particular time, like dollar, yen, euro, etc., consisting of banknotes and coins, that does not require endorsement as a medium of exchange. More would be structured or if it will be rolled out. “While a CBDC could provide a Secure container for storing money and valuables, with high resistance to breaking and entering. More, digital A transfer of funds which discharges an obligation on the part of a payer vis-à-vis a payee. More option for households and businesses as the payments system continues to evolve, and may result in faster payment options between countries, there may also be downsides,” the Fed said.
“We look forward to engaging with the public, elected representatives, and a broad range of stakeholders as we examine the positives and negatives of a central bank digital currency in the United States,” Federal Reserve Chair Jerome H. Powell said.