A US central bank digital currency isn’t necessary for dollar supremacy- Fed’s Waller

Creating a US central bank digital currency is likely not important to the long-term status of the US dollar, Federal Reserve Governor Christopher Waller said Friday.

In a speech during an event held by the Harvard National Security Journal, Waller said that a digital dollar would not offer material benefits over making US dollar-denominated payments, especially because the introduction of a central bank digital currency, or CBDC, would introduce additional risks, such as cybersecurity threats.

“I don’t think there are implications here for the role of the United States in the global economy and financial system,” Waller said, suggesting instead that the debate around a digital dollar should focus on financial stability, payment system innovations and financial inclusion.”