Fed Chair’s Message on Potential for Central Bank Digital Currency

Federal Reserve Chair Jerome H. Powell has issued a video message in a recent press release of the Federal Reserve's response to technological advances driving rapid change in the global payments landscape. He noted, "As the central bank of the United States, the Federal Reserve is charged with promoting monetary and financial stability and the safety and efficiency of the payment system. In pursuit of these core functions, we have been carefully monitoring and adapting to the technological innovations now transforming the world of payments, finance, and banking.”

Powell spoke of how tech advances enable the development and issuance of central bank digital currencies, or CBDCs. A CBDC is a new type of central bank liability issued in digital form. While various structures and technologies might be used, a CBDC could be designed for use by the general public.