Mester: Fed doesn't rule out use of CBDC, bank is gaining insights

Tuesday, 04. October 2022 15:55

Federal Reserve Bank of Cleveland President Loretta Mester suggested Tuesday that the Fed doesn't rule out the use of a Central bank digital currency (CBDC); in that sense, the bank is "gaining insights" on its implementation.

"No decision has been made about whether to issue a US central bank digital currency. Nonetheless, given the evolving digitalization of the financial system, under coordination by the Board of Governors, the Federal Reserve System is researching and experimenting with the underlying technologies," Mester said in her latest speech on the Federal Reserve's efforts to modernize payment systems.

According to Mester, the Fed is also acquiring knowledge that will not only help to make a future decision on a CBDC but will also help to continue work on faster payments, cross-payment system interoperability, and payment system resiliency.

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Baha Breaking News (BBN) / JG