Federal Reserve Bank governor Michelle Bowman has expressed uncertainty about the use case for a central bank digital currency (CBDC) in the United States. Speaking at a roundtable event at Harvard, Bowman suggested that there may be alternative solutions that already address the same issues that a digital dollar aims to solve. She highlighted that the potential benefits of a US CBDC are unclear and that its introduction could pose significant risks and tradeoffs for the financial system, including concerns about consumer privacy. Bowman also mentioned stablecoins as potential alternatives to CBDCs, but cautioned that they too come with risks, as they are less regulated and have been unstable in the past. She emphasized the importance of understanding the risks and tradeoffs associated with digital assets and new banking and payment arrangements, while supporting responsible innovation that benefits consumers. However, she warned against solutions that could disrupt and disintermediate the banking system, potentially harming consumers and contributing to broader financial stability risks.

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Information	Details
Geography	North America
Countries	🇺🇸
Sentiment	neutral
Relevance Score	1
People	Michelle Bowman
Companies	Federal Reserve Bank, U.S. banking system, Harvard
Currencies	None
Securities	None