April 18 (Reuters) – A so-called “wholesale” central financial institution digital forex may maintain promise for the longer term settlement of sure monetary market transactions and processing worldwide funds, Federal Reserve Governor Michelle Bowman stated on Tuesday.
Whereas a digital greenback may make sense for interbank transactions, there might be unintended penalties like disruptions to the banking system if the Fed had been to design a central financial institution digital forex that will be immediately accessible to the general public, Bowman stated in ready remarks for an occasion at Georgetown College’s Psaros Heart for Monetary Markets and Coverage.
The U.S. central financial institution has not but stated if it might embark on an effort to create a central financial institution digital forex, and has beforehand stated it might search authorization from Congress and the chief department earlier than doing so.
Reporting by Ann Saphir and Hannah Lang; Enhancing by Paul Simao
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