Wells Fargo said that we can expect a CBDC to be designed, approved, and launched in three to five years from now. Check out the latest reports about this below.
American CBDC on its way
According to a report by strategists at a Wells Fargo subsidiary, the US may be able to create and launch a central bank digital currency (CBDC) in the next five years.
The report suggests that the US is exploring the possibility of a CBDC following President Joe Biden’s executive order authorizing the Federal Reserve to investigate CBDC technology. The report was authored by John LaForge, head of real asset strategy at Wells Fargo Advisors, and Mason Mendez, investment strategy analyst.
“We suspect it will be some years before a US CBDC is designed, approved, and used. Our best guess would be three to five years. The release of FedNow, a new fast payments program (not a blockchain-related technology) launched in July 2023, might give us some clues on the timeline, though.”
The notes continued and revealed the following:
“The Fed formally started studying the potential of FedNow in September 2013 – nearly 10 years before its release. While we are not expecting a CBDC release to take 10 years, we do believe it could be a few more years before a final design is reached.”
The Wells Fargo Advisors’ analysts stated the fact that debate over a potential US CBDC will only continue to increase.
“CBDCs are programmable, which means that they have the potential to be tracked, monitored, and shut down by authorities. “Potential” is the operative word, as the technology is flexible and can be designed to be privacy-friendly, too.
While clearly no formal CBDC design has been set, many elected officials have begun to voice their concerns over personal privacy. This is the case with many Presidential candidates, too, so expect to hear the term CBDC regularly with the 2024 election approaching.”
Regarding whether the world’s largest economy needs a CBDC, the two Wells Fargo Advisors’ analysts say the following as quoted by the online publication the Daily Hodl:
“In our view, a strong case has yet to be made that Americans ‘need’ a CBDC. Central authorities, such as the Fed and Treasury, could certainly benefit from traceable money. CBDCs could give them valuable insights into not only the American economy but the global economy, too, with the US dollar as the world’s reserve currency.”
They also believe the fact that better monetary intelligence for central planners, however, “must be weighed against the potential loss of individual privacies in a country founded on individual rights.”