Fed’s Quarles: Foreign digital currency not a threat to dollar
Vice-Chair of the Federal Reserve Randal Quarles stated on Monday during a Bankers Association Convention that he doesn’t see foreign central bank digital currency (CBDC) as a threat to the US dollar status.
Quarles pointed out that the US dollar has already been highly digitalized in electronic operations tied to commercial banks. However, these dollars used in a digital manner are not the same as a CBDC that central banks or the Federal Reserve in the US could potentially issue.
“I am skeptical that the Federal Reserve has legal authority to pursue either of these CBDC models without legislation. Nevertheless, the recent clamor over CBDCs makes it appropriate to explore the benefits, costs, and practicalities of implementing one in the United States if such legislative authority were granted,” Quarles said.
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