In Long-Awaited CBDC White Paper, Fed Flags Privacy, Financial Stability Risks

In Long-Awaited CBDC White Paper, Fed Flags Privacy, Financial Stability Risks
The U.S. central bank believes the current financial system might be bolstered by the creation of a central bank digital currency (CBDC), but only one that works within the current network of private banks, rather than a CBDC that the Federal Reserve issues directly to consumers.The Fed released its long-awaited white paper on CBDCs Thursday. It did not commit to creating (or not creating) a digital dollar, but did explain its questions in approaching the issue and ask for public feedback on questions of privacy, financial stability and just how a digital dollar might be used.Fed Chair Jerome Powell alluded…