While many countries in the world are planning their own Central Bank Digital Currency (CBDC), governors from the United States Federal Reserve Board feel differently. The Federal Reserve Board is presently preparing a report on a prospective digital dollar. However, how things will unfold is still subject to debate since three governors from the Federal Board have voiced their opinions against CBDCs. Governor Michelle Bowman says she does not see the necessity or benefits of incorporating CBDCs into the existing infrastructure. On the other hand, financial experts claim that CBDCs will revolutionize payment systems and help fight inflation effectively.
With all the debate surrounding CBDCs, it is still unclear how nations around the world will materialize this concept. While countries are at a testing phase, the long-term implications of CBDCs have not gone through intense scrutiny. It will be quite some time before we have a clear understanding of how CBDCs will work and what role they will play in the economy.
In continuation of events, another governor – Randal Quarles – echoed Bowman’s comments. He said that unless there is a clear answer to why CBDCs are needed, he would not be convinced of its utility.
Experts around the world now think that CBDCs will have a positive impact on cross-border payments. Recent reports by JPMorgan and its likes have verified the amount of money that will be saved with CBDCs. How things will play out for the digital dollar is still very unclear.