Federal Reserve Board Chair Jerome Powell said the Fed is planning a discussion paper for this summer on the possibility of issuing a U.S. central bank digital currency.
Focus: In a video message, Powell said the Fed will focus on whether and how a CBDC could improve on an already safe, effective, dynamic, and efficient U.S. domestic payments system.
Impact: "We think it is important that any potential CBDC could serve as a complement to, and not a replacement of, cash and current private-sector digital forms of the dollar, such as deposits at commercial banks," Powell said.
Background: A new series on ICBA’s Main Street Matters blog explains what CBDC is, how it compares to other digital assets, and why central banks are pursuing it. Read the latest post.