Senate Banking Committee and the CBDC Prospect
The Committee heard from witnesses about the possible role of a CBDC in the USA. Witnesses were both for an against and they highlighted the failure of cryptocurrencies due to high levels of price volatility and the sheltering aspect for illegal trade.
The only real consensus was that a Chinese style CBDC which would be used for suveillance would not be viable in the USA. There was some evidence about the MIT project with the Fed Reserve of Boston.
There were views that a payment system should be competitive and hence in private hands; but the members seem to all agree the current system was too costly and slow – it needed reform.
There was also some evidence about the Digital Dollar project.
Building A Stronger Financial System: Opportunities of a Central Bank Digital Currency.” The witnesses will be: Dr. Neha Narula, Director, Digital Currency Initiative, MIT; Mr. Lev Menand, Academic Fellow and Lecturer in Law, Columbia Law School; The Honorable J. Christopher Giancarlo, Senior Counsel, Willkie Farr & Gallagher; and Dr. Darrell Duffie, Adams Distinguished Professor of Management and Professor of Finance, Stanford University Graduate School of Business.