The U.S. Federal Reserve has revealed its plans to launch a review on potential risks and opportunities of Digital Dollar, the potential Central Bank Digital Currency (CBDC) of the US, as early as this week, The Wall Street Journal reported today.
As per the reports, the Fed will release a paper analyzing the issue and solicit public opinion on the matter.
Initially, a detailed report was scheduled for September after Fed Chair Powell emphasized that a report was due ‘soon’ on September 22.
However, it’s unlikely that a decision would be made soon as the Fed remains divided on the matter. At the time, Powell said that a CBDC would be launched only if there were clear and concrete benefits that exceed any costs and risks.
However, at the National Association for Business Economics on Sept. 27, Fed Governor, Lael Brainard said in a statement:
“It’s just very hard for me to imagine that the U.S., given the status of the dollar as a dominant currency in international payments, wouldn’t come to the table in that circumstance with a similar kind of an offering.”
