Fed Panel Members Said the Scope of CBDCs is Currently Quite Limited

The Federal Reserve of the United States (Fed) recently hosted a panel discussion. Participants noted that the cross-border use of central bank digital currencies (CBDCs) is now quite constrained. The main point of the comments was that CBDCs, in their current form, would not significantly alter the course of history. One panel discussion was devoted to discussing problems with digital assets. The CBDCs were one of the issues addressed by the panelists when they spoke about the technologies underlying cryptocurrencies. The panelists claimed that the CBDCs’ potential for cross-border use was still reasonably small. According to the conference’s official notes: “Panelists generally agreed that technology by itself would not lead to drastic changes in the global currency ecosystem, as other factors such as the rule of law, stability, network effects, and the depth of markets are crucial for the advantages held by dominant currencies.” The US Fed is Undoubtedly Thinking about CBDCs There has been a lot of speculative activity on whether the Federal Reserve will introduce a CBDC. The Fed officially said it was considering a digital version of the dollar in April after remaining silent for a long time while other nations unveiled plans. Given the recent comments made at the conference and the lack of a publicised launch date, it might take some time before the nation is prepared. A CBDC has received some internal support, with Vice-...