Fed Governor Waller 'Highly Skeptical' of a Fed Digital Coin

Federal Reserve Governor Christopher Waller said he is "highly skeptical" about the need for the U.S. central bank to develop a digital currency. From a report: "While CBDCs continue to generate enormous interest in the United States and other countries, I remain skeptical that a Federal Reserve CBDC would solve any major problem confronting the U.S. payment system," Waller said in the text of remarks prepared for delivery Thursday to the American Enterprise Institute. The Federal Reserve Board stepped up its engagement on the possibility of a central bank digital currency in May when Chair Jerome Powell said the central bank will issue a paper outlining the Board's thinking on digital payments "with a particular focus on the benefits and risks associated with CBDC in the U.S. context." Powell said the central bank will also seek public comment on issues related to payments, financial inclusion, data privacy, and information security. The Boston Fed is also studying technologies around digital payments in conjunction with Massachusetts Institute of Technology in Cambridge, Mass.

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