Washington, D.C. — Today, the Federal Reserve issued a discussion paper on central bank digital currency to solicit public feedback. Paige Pidano Paridon, Senior Vice President and Associate General Counsel, issued the following statement in response:
We welcome the paper and its lengthy comment period, which shows a commitment to the seriousness, and a recognition of the uncertainty, of the subject matter, and the need for further research. The paper provides a wise and measured assessment of the relative pros and cons of a potential U.S. CBDC, identifying possible benefits along with a series of significant dangers, including to financial stability and the ability to conduct monetary policy. We support the Fed’s commitment to moving forward with a CBDC only if, first, Congress specifically authorizes the Fed to issue it and, second, that empirical evidence demonstrates that a U.S. CBDC would provide benefits that exceed its risks and costs.
For additional BPI research and commentary on central bank digital currency, please visit the following links:
- Central Bank Digital Currencies: Costs, Benefits and Major Implications for the U.S. Economic System
- The Benefits and Costs of a Central Bank Digital Currency for Monetary Policy
- The Dollar, the Yuan, and CBDCs: What Talks, What Walks
- Legal Authority to Issue a U.S. Central Bank Digital Currency
- A Costly Misunderstanding About CBDC
- Central Bank Digital Currency – Frequently Asked Questions
- BPI Statement in Advance of HFSC Task Force Hearing on Central Bank Digital Currency
- BPI Statement in Advance of HFSC Subcommittee Hearing on ‘The Promises and Perils of CBDCs’
About Bank Policy Institute.
The Bank Policy Institute (BPI) is a nonpartisan public policy, research and advocacy group, representing the nation’s leading banks and their customers. Our members include universal banks, regional banks and the major foreign banks doing business in the United States. Collectively, they employ almost 2 million Americans, make nearly half of the nation’s small business loans, and are an engine for financial innovation and economic growth.