Fed Member Criticizes Launch of Digital Dollar
Main page Opinion, US, CBDC
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Oct. 17, 2022

Christopher Waller, a member of the US Federal Reserve Board (Fed), has said during a speech at Harvard University the launch of a central bank digital currency (CBDC) will not strengthen the position of the US dollar in the international arena.

According to him:

"Proponents of issuing a CBDC tend to tout it as a tool that can reduce transaction costs, speed up settlements, and provide a better user experience. I am extremely skeptical that a CBDC alone can mitigate traditional problems enough to prevent things like fraud, theft, money laundering or terrorist financing."

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According to Waller, a digital currency will automate some processes, but it is not a "one-size-fits-all" solution. He has explained most of the new tools aimed at improving the quality of cross-border settlements are part of existing systems.

He has pointed out the dollar's position as the world's reserve currency is more influenced by political and financial reasons than technological ones.

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