Federal Reserve Governor Christopher Waller remains highly skeptical of whether there is a compelling need for the U.S. central bank to create a digital currency.
Waller noted that while central bank digital currency (CBDC) systems may be able to automate some processes that help address certain challenges, they are not unique in doing so.
"I am highly skeptical that a CBDC on its own could sufficiently reduce the traditional payment frictions to prevent things like fraud, theft, money laundering, or the financing of terrorism," Waller said Oct. 14 at the "Digital Currencies and National Security Tradeoffs" symposium presented by the Harvard National Security Journal, Cambridge, Massachusetts.
Nevertheless, Waller emphasized the importance of the ongoing debate over the risks and benefits of a CBDC.
"I am happy to continue to engage with both advocates and skeptics of CBDCs," he said. "We should... debate the salient CBDC-related topics, like its effects on financial stability, payment system improvements, and financial inclusion."
The Federal Reserve Board has so far not made decisions on whether to move forward with a CBDC.
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