Are There Compelling Reasons to Consider a Central Bank Digital Currency for the U.S.?

Abstract: This article examines alternative arguments for considering a central bank digital currency (CBDC) for the U.S. It points out that introducing a CBDC is unlikely to substantially improve the current U.S. money and payments system. A more compelling reason to consider a CBDC is to prepare the U.S. system against future threats, especially those associated with the rise of private and foreign digital currencies. Therefore, there appears no immediate need for the U.S. to issue a CBDC, but the U.S. needs to explore the CBDC technology now for potential future use.

Keywords: CBDC; currencies; cryptocurrency; fintech; banking;

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Bibliographic Information

Provider: Federal Reserve Bank of Richmond

Part of Series: Richmond Fed Economic Brief

Publication Date: 2022-06

Volume: 22

Issue: 20