Fed Governor Waller questions CBDC’s payments utility

Odaily News Christopher Waller, a governor of the Federal Reserve, expressed doubts about whether the U.S. payment system needs a central bank digital currency (CBDC) at the 2024 Clearing House Annual Meeting held on November 12, questioning whether the system has problems that CBDC can solve. He said: "In a speech I gave in August 2021, I asked, what problems can CBDC solve? In other words, what market failures or inefficiencies require this particular intervention? In more than three years, I have not heard a satisfactory answer about CBDC." Waller advocates market-driven solutions and emphasizes the benefits of the private sector promoting innovation in payment systems through competition. He said that the private sector is driven by profit and competition and tends to make better decisions when determining which technologies are worth investing in and which technologies may not meet consumer needs. Waller further stated that until clear needs that cannot be met by the private sector are identified, the role of the government should remain supportive rather than directly competing with private payment innovation. (CryptoSlate)