An Update on Digital Currencies (speech by) Governor Lael Brainard for Federal Reserve Board of Governors

Lael Brainard, a member of the Board of Governors of the U.S. Federal Reserve System, gave a speech in which she commented on the concept of central bank digital currencies (CBDCs). She stated that the Federal Reserve is currently active in conducting research and experimentation related to distributed ledger technologies and the potential use cases for digital currencies. “Given the dollar’s important role, it is essential that the Federal Reserve remain on the frontier of research and policy development regarding CBDCs. As part of this research, central banks are exploring the potential of innovative technologies to offer a digital equivalent of cash. Like other central banks, we are continuing to assess the opportunities and challenges of, as well as the use cases for, a CBDC, as a complement to cash and other payments options.”