CBDC could increase financial instability, Fed’s Bowman warns

Michelle Bowman
Michelle Bowman
Federal Reserve

A central bank digital currency (CBDC) could threaten US banking stability, and will not increase payment speed or financial inclusion, Federal Reserve governor Michelle Bowman said.

Policy-makers needed to be clear what problems they thought a CBDC could solve, and what unintended consequences it could have, Bowman said. She made it plain that she thought some widely made arguments in favour of a CBDC were weak.

“Improving the speed of payments, particularly retail payments, can be

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