We should ask “what current frictions exist or may emerge in the payment system that only a CBDC can solve, or that a CBDC can solve most efficiently?” In my view, it is important that the Federal Reserve is a part of the ongoing conversations around CBDCs, whether or not a CBDC is ultimately created in the United States.
As the Federal Reserve continues to monitor developments in other jurisdictions, we will work closely with international counterparts on payments innovation, CBDC, and other related topics. This includes work with multilateral institutions such as the Bank for International Settlements, the G7, and the Financial Stability Board, as well as bilateral engagements with other central banks.