The Fed’s upcoming payment service fulfills many of the same purposes as a CDBC.
Key Takeaways
- Governor Michelle Bowman said today that the Federal Reserve’s FedNow service could be ready by mid-2023.
- She suggested that the payments service addresses the need for a central bank digital currency (CDBC).
- She also said that the Federal Reserve is creating expectations for banks that want to provide crypto services.
The U.S. Federal Reserve is considering a payment system that could reduce the need for a central bank digital currency (CDBC).
Federal Reserve Touts FedNow Benefits
A service called FedNow could fulfill a role envisioned for CBDCs.
Governor Michelle W. Bowman of the U.S. Federal Reserve made various comments on the matter today during a speech at the VenCent Fintech Conference in Little Rock, Arkansas. In her address, she said that the Federal Reserve is developing a service called FedNow, a payment service that is aimed at depository institutions.
