The U.S. Federal Reserve has included central bank digital currencies (CBDCs) among its top 7 responsibilities to Congress, according to U.S. Representative and CBDC opponent Tom Emmer.
The Fed has not lost sight of CBDCs
Representative Emmer shared a document reportedly presented to his staff at a Federal Reserve presentation to Congress, indicating that the Fed has not abandoned the idea of CBDC. However, the document does not contradict earlier comments by Fed Chairman Jerome Powell, who stated that the U.S. is “nowhere close” to recommending or adopting CBDC “in any form.”
CBDCs in the Fed’s Key Duties
CBDCs are mentioned in the Fed’s “Key Duties” list for payment systems, which also includes electronic systems such as Automated Clearinghouse and FedNow.
The Fed explores the benefits and risks of CBDCs
The Fed published a paper on CBDCs in January 2022 to explore its potential benefits and risks. It is also overseeing the digital dollar project, which has been tested in several pilot programs in recent months.
CBDCs, a controversial subject
CBDCs have been a controversial topic both within and outside the cryptocurrency industry, due to fears of an increasingly scrutinized financial system. Former US President Donald Trump vowed never to allow the creation of a CBDC if re-elected, calling it “very dangerous”.
CBDC opponents
U.S. presidential candidate Robert F. Kennedy Jr. also opposed CBDCs, calling them a “catastrophe” for human and civil rights.
Conclusion
CBDCs remain a subject of debate and concern for opponents, despite the Fed’s efforts to explore their benefits and risks. The Fed has not lost sight of CBDCs and continues to see them as an important responsibility to Congress.
