As the crypto industry’s popularity consistently rises, governments all over the world are actively working on introducing central bank digital currencies, or CBDCs, as a viable alternative. While several nations have made considerable progress on that front, the United States has remained cautious and a bit hesitant.
Christopher Waller, the United States Federal Reserve Governor, recently made it known that he shall remain skeptical about any plans of possibly introducing a ‘digital dollar’, and that he is ultimately unconvinced that the country is in need of a CBDC.
Waller’s opinion on CBDCs
It was yesterday when the governor had made his opinions about CBDCs known when he had spoken to the nation’s American Enterprise Institute. He claimed that while it is true that central bank digital currencies continue to grow in popularity and are consistently garnering renewed interest both in the U.S as well as several other nations, he will nevertheless maintain his stance that a CBDC issued by the Federal Reserve would be ultimately unable to adequately solve the majority of issues that plague the country’s payment infrastructure.
Furthermore, Waller believes that that there is absolutely no reason as to why the dollar shall not maintain its dominance as far as the global payment system is concerned, and that the USD’s supremacy shall remain unmatched even if the rest of the world begins utilizing CBDCs for the purposes of international payments.
It is crucial to remember that Waller’s opinions are not universal nor is his stance an accurate reflection of the country’s overall sentiment regarding CBDCs. If anything, his comments are an indication of the fact that the United States may be left behind as the world becomes increasingly digitalized. The hotly debated topic of CBDCs is one of constant contention within the Federal Reserve itself.
Back in May, Lael Brainard had discussed all of the reasons as to why a digital dollar must be developed as soon as possible. He said that it is difficult to understand the logic of not having a CBDC when seemingly every other country already has one. Also in May, Jerome Powell had claimed that a risk-assessment will be conducted regarding the pros and cons connected with possibly implementing a CBDC in the U.S. Last month, Randal Quarles had stated that the benefits of a United States CBDC remain unclear but the risks associated with such an initiative are very real and significant.