Central bank digital currencies (CBDCs) might pose “significant risks, challenges, and tradeoffs,” warned Federal Reserve governor Michelle Bowman in a recent speech.
It has been about a year since President Joe Biden signed an executive order that directed the federal government to examine the technological infrastructure and capacity for establishing a CBDC.
Since then, the Federal Reserve has published multiple papers, and officials have remarked on the concept behind CBDCs. Fed chair Jerome Powell noted that the United States is still a long way from creating a digital dollar.
But Bowman is warning that a CBDC could be a “risk” and “impediment” to Americans’ “freedom.”…