US Treasury recommends more US CBDC research for future payment system development
The US Treasury Department recommends further research into the development of central bank digital currencies (CBDCs).
In a new report, the Treasury Department said the US is working towards creating a future payments system that promotes American values, reduces risk and encourages inclusion.
To achieve its goals, the agency recommends further investigation of a potential US CBDC if it is deemed to be in the national interest.
“The Federal Reserve is encouraged: to continue technical research and testing of CBDCs, including work on analyzing potential technology options and other design elements of CBDCs; continue to evaluate policy considerations as outlined in their January 2022 discussion paper.
[It should also] find mechanisms to provide the public with regular updates on these initiatives, given the strong public interest in the issue; and look at how digital asset research and development and other related innovations conducted or supported by other federal agencies could support the U.S. CBDC.”
The Treasury Department said it would support the Federal Reserve by creating an interagency CBDC task force.
The Department also recommends encouraging the use of instant payment systems to support a more competitive and inclusive payment landscape in the United States.
“Newly developed instant payment systems, or expected to launch soon, are capable of handling higher transaction volumes at lower costs than some current payment systems.
Experience with instant payment systems around the world shows that improvements can be made to make payment systems more competitive, efficient and inclusive, while also reducing transaction costs cross the border".
However, the report points to a number of challenges associated with the instant payment system, such as the need for customers and businesses to adjust to their financial habits and trends in owning an instant payment system.
Sep 19, 2022