CBDC Prospects in the US Questioned by Fed Governor Due to Lack of Clarity and Risk Factors
Federal Reserve Bank governor Michelle Bowman addressed concerns regarding the unclear use case for a central bank digital currency (CBDC) in the US. Speaking at a Harvard roundtable, Bowman suggested that existing alternatives might effectively address the issues a digital dollar aims to resolve.
She emphasized potential risks associated with a US CBDC, including unintended consequences for the banking system and significant consumer privacy concerns. Bowman noted stablecoins as an alternative, although she highlighted their instability and lack of regulation, posing risks to both consumers and the financial system. She emphasized the need for a cautious approach, supporting responsible innovation while urging against solutions that could disrupt the banking system and jeopardize consumer interests and overall financial stability.
Clever Robot News Desk 19th October 2023
