Pros, Cons, and Other Bank Considerations for a US Central Bank Digital Currency

This summer several U.S. officials in Congress, at the Federal Reserve Bank, and the Office of Financial Research made public statements advocating for a U.S. central bank digital currency (CBDC). Once almost universally waved aside as at best unnecessary and at worst potentially damaging to the financial system, the tide may now be turning in favor of a digital dollar.

Extreme volatility in the stablecoin market is one contributor to this growing momentum. Peer pressure is another. …