Cryptocurrencies
Fed Takes Key Step in Deciding on U.S. Digital-Coin Issuance
- Central bank seeks public feedback on government-backed coin
- Issuance seen as having big implications for financial system
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The Federal Reserve took a key step in weighing the creation of its own digital currency, a move it said could help ensure the U.S. dollar’s dominance as the central bank grapples with fast-growing private cryptocurrencies and coins issued by other nations.
The central bank made no firm conclusions on whether issuing such a currency was prudent and in any case said it doesn’t intend to proceed without support from the White House and Congress -- so it’s not likely a U.S. digital dollar will be issued anytime soon. But the 35-page discussion paper issued Thursday on a government-backed coin, known as a central bank digital currency or CBDC, marks the Fed’s most significant action yet as it seeks to dive deeper into digital assets.