US Central Bank Official: A CBDC Rollout Would Require Congress To Boost Fed’s Authority

Just the other day, it’s been revealed that the Senate Banking Committee held a hearing on oversight of the Federal Reserve – the topic of a central bank digital currency played a prominent role.

Vice-Chairman for Supervision Randal Quarles testified on behalf of the Fed, according to the latest notes coming from The Block Crypto.

New report on CBDCs to be out soon

“I’m glad to see the Fed moving forward with issuing a report on central bank digital currencies,” said Senator Chris Van Hollen in one exchange.

He continued and said: “Can you tell me whether or not the Fed would have the existing authority to launch a pilot if it so chose, or do you believe it would need congressional authority?”

Quarles responded that the study was designed to determine whether a CBDC is appropriate for the United States, which is, he said, “very much an open question.”

On the other hand, according to the same publication mentioned above, “a broader pilot and certainly a CBDC itself is most likely to require additional authority,” according to Quarles.

Quarles also said: “In some cases, fintech firms are seeking to operate without banking partners. In some cases, they can operate more cheaply, which can raise inclusion, but raises questions as to how we think about those firms.”

We suggest that you check out the original article in order to learn more about the issue.

A discussion paper is in the works

The U.S. Federal Reserve is planning to publish a discussion paper soon that will have a “particular focus on the possibility of issuing a U.S. central bank digital currency,” according to a press release.

The press release also noted that the paper will complement research that the Federal Reserve is already undertaking.

The Block Crypto notes that the Federal Reserve chairman Jerome Powell highlighted the agency’s goals of promoting financial stability and ensuring the payments system is efficient.

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