Fed official Christopher Waller thinks the US doesn’t need a digital dollar.
Waller continued his opposition to the idea of a digital dollar in his speech today.
Fed Official Opposes Digital Dollar
Fed official Waller, highlighting the US economy, said that the CBDC would not have an effect.
“Factors supporting the dollar’s primacy include U.S. Treasuries, ample supply, the liquid market, and the long-standing stability of the U.S. economy and political system. No other country can compare to the US in this regard, and a CBDC cannot change that.”
Waller said he was skeptical of arguments that an upcoming CBDC would improve fraud, theft, anti-money laundering and payment technology.
“We are continuing our efforts at the international level to improve international payments. The vast majority of these efforts come not from CBDCs but from improvements to existing payment systems.”
Discussions on the digital dollar have escalated after China launched its digital yuan. But the Fed official is skeptical of CBDCs.
Waller argued that even if another country’s issued CBDC were to rise, the effects would only be on the margin.
Also speaking about stablecoins, Waller thinks that these assets strengthen rather than weaken the dollar as their value is pegged to fiat currencies.
In contrast, Treasury Secretary Janet Yellen said they needed a CBDC.
