Brainard Lays Out Cost Benefits of Central Bank Digital Currency

The Federal Reserve is stepping up its research on digital currencies, Governor Lael Brainard said, amid growing demand for digital payments.

Brainard said three other topics -- the growing role of digital private money, plans for using digital currency for cross-border payments by foreign central banks, and possible benefits for financial inclusion -- have sharpened the Fed’s focus on central bank digital currency.

Brainard, who is the governor in charge of financial stability at the Fed, has watched Bitcoin and other digital assets become investment vehicles over the past year, raising questions about how the Fed and regulators would approach ...