Federal Reserve Governor Christopher Waller has opposed the U.S. Fed issuing CBDC. In a Friday speech, Waller explains that the CBDC is unnecessary and the main points supporting it are “not technological.”
“The elements that support the primacy of the dollar aren’t technological, but they do include the large supply and liquidity marketplace to U.S. Treasury securities and other debts, as well as the long-standing security that is the U.S. economy and political system,” Waller said in prepared remarks made on the campus of Harvard University. “No other nation is similar to the United States on those fronts, and CBDC could not change this.”
The advocates of the CBDC promoted by the Fed claim it will tackle issues like fraud and digital theft. But, Waller is doubtful of the claims that CBDC can help us.
“Meaningful efforts are being made on a global scale to enhance cross-border payments in various ways, the majority of these advances not from CBDCs, but from enhancements to the established payment mechanisms,” said Waller.
A few governors of the Federal Reserve Board have shown an interest in working on the development of the CBDC, and so have officials from the U.S. Treasury. U.S. Treasury Secretary Janet Yellen recently said it’s “certainly worthy of” Congress working on the development of Central Bank Digital Currency (CBDC).
There is no definitive decision on establishing a Fed CBDC. Other countries have started experimenting with the concept of an electronic Rupee in India and digital Yuan in China.