Governor of the Federal Reserve slows down US CBDC in favour of FedNow
A leader at the Federal Reserve is putting the brakes on crypto-related speculation on regulatory engagement.
In a speech delivered on August 17, Federal Reserve Governor Michelle Bowman criticised a number of crucial aspects of the Fed’s work and its overlap with fintech and cryptocurrency industry issues.
Among the most important is the drive for a US central bank digital dollar, commonly known as a digital dollar or CBDC. A digital dollar, which has become the topic of considerable political discussion over the past year, has become increasingly controversial. According to Bowman, the Fed’s plans for FedNow will fill the void envisioned by many for a US CBDC.
“Thanks to the FedNow Service, financial institutions of all sizes and in all parts of the United States will be able to offer secure and convenient fast payment services to their customers. It aims to be a flexible, impartial platform that supports a wide range of rapid payments “Bowman stated. My assumption is that FedNow will address the concerns voiced by those regarding the need for a CBDC.
Bowman also took an indirect jab at the crypto industry’s desire for banks to accept crypto assets as payment.
Turning to recent Fed guidelines about demands for “master accounts,” Bowman adopted a cautious tone.
She stated, “Publishing the rules increases openness and uniformity throughout the Fed. More effort is needed before implementing the principles completely. In the meanwhile, the rules may set incorrect expectations for analysing and responding to requests.”
Effectively, Bowman is indicating that the backlog of requests for master accounts will persist for the foreseeable future.