ChainCatcher News: Federal Reserve Governor Christopher Waller expressed skepticism about whether the U.S. payment system needs a central bank digital currency (CBDC) at the annual clearinghouse meeting held on November 12, 2024, questioning whether there are issues that a CBDC could address.
He stated, "In a speech I gave in August 2021, I asked, what problems can a CBDC solve? In other words, what market failures or inefficiencies require this specific intervention? Over three years, I have yet to hear a satisfactory answer regarding CBDCs."
Waller advocates for market-driven solutions, emphasizing the benefits of private sector competition in promoting innovation in payment systems.
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 clear needs that the private sector cannot meet are identified.