Digital Currency | financial system
Digital currency could 'fundamentally change' the financial system, says Federal Reserve
The US Federal Reserve is seeking public comment on the pros and cons of it releasing a US central bank digital currency.
The US Federal Reserve is looking at the pros and cons of releasing a central bank digital currency, or CBDC, for domestic payments.
A CBDC issued by the Fed, the US central bank, could enable easier and faster electronic payments, but it may add risks to financial stability and reduce privacy compared to cash transactions. A CBDC is the digital equivalent of cash but with the properties of digital payments
"The Federal Reserve does not intend to proceed with issuance of a CBDC without clear support from the executive branch and from Congress, ideally in the form of a specific authorizing law," It adds.