Xinhuanet: Fed Opens to Central Bank Digital Currency

According to Xinhua News, on February 5th, Federal Reserve Board member Lyle Brainer delivered a speech on "Payment and Currency Digitization" while attending the conference at Stanford Business School, saying that the Fed is exploring a number of related issues, including Policy, design and legal considerations related to autonomous digital currency issuance. He said that by changing payment methods, digitalization is likely to achieve higher value and more convenience at a lower cost, but it has risks. Some new players are outside the supervision of the financial system, and their new currency may pose challenges to combating illegal finance, privacy, financial stability, and monetary policy transition. Reuters reported that Brainerd's statement showed the concerns of many central banks around the world about the rise of private digital payment systems and currencies such as Facebook's Libra. Regarding whether the Fed is likely to issue digital currency in the future, she is also more open than ever.