Fed’s Mester Says CBDC Risks Need Evaluating, No Decision Made

Federal Reserve Bank of Cleveland President Loretta Mester said the Fed is evaluating the potential for a US central bank digital currency but has not yet decided whether to proceed.

• “No decision has been made about whether to issue a U.S. central bank digital currency,” Mester says in remarks prepared for a Chicago Fed conference focused on payments
• “Nonetheless, given the evolving digitalization of the financial system, under coordination by the Board of Governors, the Federal Reserve System is researching and experimenting with the underlying technologies”
• “There are numerous issues pertaining to CBDC that have to be evaluated including the ...