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Federal Reserve Vice Chair Testifies on the Benefits and Risks of CBDC

The House Financial Services Committee conducted a hearing entitled, “The Future of Money: Assessing the Benefits and Risks of a U.S. Central Bank Digital Currency” to examine research on a U.S. central bank digital currency (CBDC) published by the Federal Reserve that defines a CBDC as a “digital liability of a central bank that is widely available to the general public” that can be commonly used via payment apps and bank accounts. Proponents of CBDCs claim that they may address long-term goals such as payment systems efficiency and financial inclusion that the digital private sector may not be prioritizing.