MNI BRIEF: Waller 'Highly Skeptical' of Fed Digital Currency

Federal Reserve Governor Christopher Waller expressed strong skepticism about the need for the central bank to issue a digital currency, saying it wouldn't solve any major problem confronting the U.S. payment system and any potential benefits could be accomplished through other means.

"At this early juncture in the Fed's discussions, I think the first order of business is to ask whether there is compelling need for the Fed to create a digital currency. I am highly skeptical," he said in prepared remarks for a speech to the American Enterprise Institute. "After careful consideration, I am not convinced as of yet that a CBDC would solve any existing problem that is not being addressed more promptly and efficiently by other initiatives," he said.

Other top Fed officials have also expressed doubts. Fed Vice Chair for Supervision Randal Quarles last month said the Fed doesn't need to compete against domestic stablecoins or against foreign competitors such as China's digital currency. The Federal Reserve will publish a discussion paper later this summer on the benefits and costs of creating a CBDC.