In the ever-evolving world of money and payments, Federal Reserve Governor Michelle Bowman has expressed a cautious stance regarding the issuance of a U.S. central bank digital currency (CBDC). She believes that the risks associated with CBDCs may outweigh the potential rewards.
Governor Bowman emphasizes the importance of foresight in the face of emerging changes within the financial sector. She argues that, to improve payments, policymakers should consider a wide range of options, such as technological advancements, enhancements to existing payment infrastructure, and policy adjustments. Moreover, she underscores the need for a thorough analysis of the associated risks and tradeoffs before making any decisions.
Bowman supports a responsible approach to innovation that recognizes the vital role of private sector innovations and leverages the strengths of the U.S. banking system. She believes that policymakers should prioritize the enhancement of payment and financial system infrastructure, as well as the development of effective policies. To achieve this, Bowman advocates for a clear regulatory framework that promotes responsible innovation while preserving the stability of the U.S. banking and payment systems.
Overall, Governor Bowman’s cautious approach emphasizes the need for thorough evaluation and thoughtful planning in any potential move toward a U.S. CBDC. Her perspective underscores the importance of maintaining a strong and stable financial foundation while exploring innovative opportunities in the ever-changing landscape of payments and finance.
