Fed expands CBDC research

Several Federal Reserve regional banks have joined the Fed’s initiative to study a national digital currency (CBDC). Among the nine specialists are software developers, according to the transcript of Cleveland Fed President Loretta Mester’s remarks.

Payments and the Pandemic by ForkLog on Scribd

Mester’s remarks indicated that the Fed’s Board of Governors has a technology laboratory. It is developing and testing various distributed-ledger platforms to understand their potential benefits and trade-offs.

In her remarks, the Federal Reserve official noted that no final decision has yet been made on issuing a CBDC.

“Experiments are an important component of evaluating the benefits and costs of CBDC. The questions arising regarding financial stability, market structure, safety, privacy, and monetary policy still require thorough examination,” added Loretta Mester, president of the Cleveland Fed.

How and why central banks are creating digital currencies (CBDCs)

In August, ForkLog reported the start of experiments with a hypothetical Boston Fed digital dollar and the Massachusetts Institute of Technology.

In June, the New York Fed заключил a strategic partnership with the Bank for International Settlements to create an innovation hub, which will focus, among other things, on digital currencies and payments.

Also in June, Philadelphia Fed researchers concluded that issuing a digital dollar would weaken commercial banks and strengthen the central bank’s power.

Subscribe to ForkLog news on Telegram: ForkLog Live — the full feed, ForkLog — the most important news and polls.