Challenges in Adopting CBDCs for Payments

Federal Reserve Governor Christopher Waller recently questioned the necessity of a central bank digital currency (CBDC) in the US payment system during a speech at The Clearing House Annual Conference 2024. Waller emphasized the lack of a clear problem that CBDCs could solve and advocated for market-driven solutions. He highlighted the private sector's role in fostering payment system innovation through competition. US lawmakers, including Patrick McHenry, have expressed concerns about CBDCs, citing issues related to privacy and financial freedom. Anti-CBDC legislation has been passed in states like Louisiana and North Carolina. Additionally, the article discusses the inflows into spot Ethereum ETFs post-US elections, Bitcoin's appeal as a hedge amidst shifting US policies, and the cost efficiency of running a crypto business compared to traditional financial services. The article also includes a disclaimer regarding investment advice and the risks associated with trading cryptocurrencies. Read more AI-generated news on: https://app.chaingpt.org/news