Fed Chairman Lael Brainard can’t imagine future without digital dollar

Pointing to a number of reasons for the creation of a digital version of the US dollar, Federal Reserve Governor Lael Brainard insisted that the absence of this would not lead to a sustainable future. A central bank official believes the digital dollar will have both international and domestic applications.

US fed Chairman Lael Brainard can’t understand why he didn’t release CBDC
While other countries, especially China, support their own digital currency projects, US Federal Reserve Board member Lael Brainard stressed the importance of developing digital dollars. Speaking to the Aspen Institute Economic Strategy Group on Friday, brainard said::

The dollar is very dominant in international payments, and if you have other major jurisdictions around the world with the digital currency, the CBDC offer, and it’s not available in the US, I can’t understand that.

“This does not seem like a sustainable future for me,” added Lael Brainard, quoted by Reuters. The announcement was made at a time when the Fed is gathering feedback from the public about the potential costs and benefits of releasing the US central bank’s (CBDC) digital currency. A discussion paper containing draft directions is expected in early September.

Brainard gave a list of several reasons why the digital dollar is needed. “One of the most compelling examples of use is in the international world, where mediation chains are opaque, long and expensive,” he said. On the domestic front, the fed Chairman noted the growth of cryptocurrencies backed by fiat money, but not government or so-called stable coins.

Stable coins can disperse and break up the payment system, Lael Brainard noted, and one or two can achieve a certain level of dominance. A spokesman for the Federal Reserve further explained:

In the world of stable coins, you can imagine households and businesses as immigration from the currency is really far away

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