- Any CBDC would best serve US interests by being privacy-protected, intermediated, widely transferable and identity-protected
- There's no recommendation on adopting a CBDC, as Powell had said
- Paper not intended to signal it will make any imminent decision about the appropriateness of issuing CBDC
- Does not intend to proceed with CBDC wihout clear support from executive branch and congress
- Powell "We look forward to engaging with the public" on the report
- The paper seeks public comment for 120 days'
- Full report
"This paper is the first step in a public discussion between the Federal Reserve and stakeholders about central bank digital currencies," the paper says.
The Fed has been teasing this report for a long time.
It highlights potential benefits, for instance "It could provide households and businesses a convenient, electronic form of central bank money, with the safety and liquidity that would entail; give entrepreneurs a platform on which to create new financial products and services; support faster and cheaper payments (including cross-border payments); and expand consumer access to the financial system,"
For instance, China is pushing a CBDC because it's worried about ceding the financial system to Alipay and its competitors.