US central bank digital currency commenters divided on benefits, unified in confusion
“Money and Payments: The US Dollar in the Age of Digital Transformation,” a discussion paper on a prospective US central bank digital currency (CBDC), was released by the Federal Reserve Board of Governors in January. The Fed received almost 2,000 pages of comments from people, as well as answers from key stakeholders, during the comment period for the paper, which ended on May 20.
MetaWeb3 reviewed a few shareholder reactions to the Fed report, and it immediately became clear that there are a lot of strong opinions out there, but little agreement. The places where they are all bewildered are the key points of commonality.
The Federal Reserve wants to know.
The Fed paper gives a thorough overview of central bank digital currency and CBDC-related subjects, which is appropriate for its purpose. The debate begins with the findings of prior studies, which indicated that a privacy-protected, intermediated, widely transferrable, and identity-verified U.S. CBDC would produce the best results. It then goes on to discuss the potential uses, benefits, and hazards of a CBDC in the United States. Stablecoins and cryptocurrencies are briefly discussed, and 22 questions are posed for debate.
In addition, the paper examines recent advancements in electronic money. Beginning in 2023, the FedNow Service is anticipated to enable real-time, round-the-clock interbank payments on the wholesale side. Meanwhile, the private Bank On project and other organizations aim to promote low-cost banking services to the unbanked and underserved.
The word “neutrality” appears to be in scarce supply in the stakeholder comments studied by Cointelegraph. In this aspect, the Institute of International Finance’s reaction stands out.
With over 450 members from over 70 countries, the IIF is a global financial sector organisation. Commercial and investment banks, asset managers, insurance companies, sovereign wealth funds, hedge funds, central banks, and development banks are among the organization’s members.
The IIF responded to all 22 questions posed by the Fed while staying neutral on the merits of establishing a CBDC in the United States.