Fed Chair Jerome Powell said it’s “more important” for the US to “get it right than to be first” regarding Central Bank Digital Currency (CBDC). “Getting it right means that we not only look at the potential benefits of a CBDC, but also the potential risks, and also recognize the important trade offs that have to be thought through carefully,” he added.
There are some “quite difficult policy and operational questions that need to be thoroughly evaluated”. He mentioned “the need to protect a CBDC from cyber attacks, counterfeiting and fraud, the question of how a CBDC would affect monetary policy and financial stability, and also how could a CBDC prevent illicit activity while also preserving user privacy and security.”
