US Fed Wants Answers To 22 Questions About Digital Dollar
The US Federal Reserve (Fed) has released its digital dollar whitepaper, and is seeking answers to 22 questions related to its central bank digital currency (CBDC) project from a wide range of stakeholders.
The Fed will move toward developing a CBDC only in the case that research "points to benefits for households, businesses, and the economy overall that exceed the downside risks, and indicates that CBDC is superior to alternative methods," the American central bank said in the report.
It added that the Fed would pursue a CBDC only "in the context of broad public and cross-governmental support."
At the same time, the Fed recognizes that a CBDC could potentially offer a wide array of benefits to the US economy. As examples, the bank said its digital currency could provide households and businesses a convenient form of central bank money, give entrepreneurs a platform on which to create new financial products and services, support faster and cheaper payments, including cross-border payments, as well as expand consumer access to the financial system.
The digital dollar could also pose certain risks, they said, raising questions on how it could affect the financial-sector market structure, credit’s cost and availability, the financial system’s safety and stability, and the efficacy of the bank’s monetary policy.
The Fed said that it welcomed comments submitted by all stakeholders on the shared list of questions. It also intends to “conduct targeted outreach and convene public forums to foster a broad dialogue about CBDC.”
The central bank is awaiting answers to its questions by May 20, and stakeholders can submit their feedback through the available form. It is not a requirement to answer all of the included questions, and
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