Federal Reserve Governor Waller questions whether CBDC can solve problems in the payment system
ChainCatcher news, Federal Reserve Governor Christopher Waller expressed skepticism about whether the U.S. payment system needs a central bank digital currency (CBDC) during the 2024 Clearinghouse Annual Meeting held on November 12. He questioned whether there are problems within the system that a CBDC could solve.
He stated, "In a speech I gave in August 2021, I asked, what problem does a CBDC solve? In other words, what market failures or inefficiencies require this specific intervention? Over three years later, I still have not heard a satisfactory answer regarding CBDCs."
Waller advocated for market-driven solutions, emphasizing the benefits of private sector innovation in the payment system through competition.
He noted that the private sector, driven by profit and competition, often makes better decisions about which technologies are worth investing in and which may not meet consumer needs.
Waller further stated that the government's role should remain supportive rather than directly competing with private payment innovations until there is a clear demand that the private sector cannot meet.
