Powell Doesn't Think Fed Falling Behind on CBDC

Q&A concludes with softball question on central bank digital currency timing.

- A: We think it's really important that the central bank maintains a stable currency and payment system for the public's benefit. Our economy runs on innovation, but where the public's money is concerned, we need to make sure appropriate public regulatory protections are in place, and today they are not.

• We are looking proactively whether to issue a CBDC and in what form. We intend to publish a discussion paper soon that will be for public engagement with many different groups including elected officials around these issues.
• The ultimate test will apply when assessing CBDC and other digital innovations: are there clear benefits that outweigh potential risks. We are investing heavily in a settlement system for instant payments in the US. It will be a major expansion.
• [ Re whether the Fed may fall behind the global race for CBDC] I don't think we are behind. I think it's more important to do this right than to do it fast. We are the world's reserve currency. And I think we are in a good place to make that analysis and make that decision.