The Fed's Wallers speaks on central bank digital currency.
- highly skeptical there is compelling need for the Fed to create a digital currency
- he is not convinced that a central bank digital currency would solve any existing problem that is not being addressed more promptly and efficiently by other initiatives
- private-sector innovations might reduce the Mark up charged by banks more effectively than a central bank digital currency would
- it seems unnecessary for the Fed to create a central bank digital currency to drive down payment costs
- he remains skeptical that a Federal Reserve digital currency would solve any major problem confronting the US payment system
- sees no reason to expect that the world will flock to a Chinese CBDC or any other
- The competition of a Fed CBDC could this intermediate commercial banks and threatened a division of labor in the financial system that works well
Wallers does not address monetary policy with the economy (as expected) in his virtual speech to the American Enterprise Institute, but there may be a Q&A session.
Waller earlier this week, surprise the market a bit with his more hawkish comments. He is clearly on the taper early side now. CLICK HERE for the headlines from his comments.
