With this in mind, our consideration of other potential innovations to money and payments, including a potential U.S. CBDC, must be viewed through the lens of whether and how the payment system would be improved beyond what instant payment services will achieve.
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.