The Fed Wants Your Input On A Potential Digital Dollar
By Jeremy M. McLaughlin and Daniel S. Nuñez Cohen
Last week the Federal Reserve Board (the “Fed”) issued a discussion paper entitled “Money and Payments: The U.S. Dollar in the Age of Digital Transformation” (the “Paper”). The Paper explores the advantages and disadvantages of the Fed issuing a central bank digital currency (CBDC or digital dollar); key design considerations of such a currency; and seeks feedback from the public on 22 specific questions directed at those topics. Comments are due by May 20, 2022. Given that Congress has indicated its interest in the Paper, digital asset and financial services industry participants should use this opportunity to have their voices heard by the Fed and members of Congress.
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