US CBDC ‘could enhance dollar’s international role’

Fed research claims issuing digital currency could increase demand for dollars more generally


A US central bank digital currency (CBDC) could increase the dollar’s role as a transaction medium, according to new research from economists at the Federal Reserve Board.

“For the international role of the dollar, a widely accessible US CBDC at the margin is likely to enhance the appeal of the dollar,” write Jean Flemming and Ruth Judson. Physical banknotes, they point out, carry greater risk of theft than a widely available CBDC. 

The authors say that depending on how it was designed, a CBDC

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