In remarks that could frustrate those who want a U.S. central bank digital currency to be created with urgency, the Treasury Secretary says she is undecided on whether to create a CBDC.
Uncertainty remains over whether the U.S. plans to push ahead with a central bank digital currency — with Treasury Secretary Janet Yellen confirming she's undecided on digitizing the dollar.
Speaking at a conference held by Reuters, Yellen warned that further work is needed to deduce the pros and cons of CBDCs, and to gauge the impact that it could have on America's banking system.
But the country's glacial pace has left some officials exasperated — especially considering that China now has a fully developed CBDC of its own, the digital yuan. Data released at the start of November revealed that 140 million consumers have already opened wallets… spending more than $9.7 billion to boot.
One of those calling for a little more urgency is Lael Brainard, who sits on the Federal Reserve's Board of Governors. She wants the U.S. to catch up — and over the summer, she said she "can't wrap my head around" not having one when China does.
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Next Steps
It doesn't look like there will be a decision any time soon. For now, we await a Federal Reserve report into the prospect of digitizing the dollar.
Yellen went on to reveal that CBDCs have not been discussed in a "serious way" at the White House — and said input would also be required from Congress.
As Washington stalls, private companies are stepping in to fill the gap by issuing their own stablecoins.
A number of reports have warned that the absence of a CBDC could ultimately undermine the dollar's position as a major global currency.
