FEDERAL RESERVE BOARD RELEASES DISCUSSION PAPER ON POTENTIAL DIGITAL CURRENCY
The U.S. Federal Reserve has released a discussion paper on the potential for a U.S. central bank digital currency. The paper includes a summary of the current domestic payments system and lists different types of digital payment methods and assets recently developed, including stablecoins and various cryptocurrencies.
The paper explores the upside and downside of a digital currency. It concludes a safe, digital payment option can be beneficial for households and businesses; however, it is uncertain how a central bank digital currency would maintain or enhance monetary and financial stability.
The Federal Reserve is seeking comments from a wide range of stakeholders that might be use a central bank digital currency or be affected by its introduction.