Featured Article: Central Bank Digital Currencies (May 20th, 2024)
Congressional Communities is featuring one Congressional Research Service (CRS) article per day in effort to share with our readers the wealth of information that the CRS makes readily available.
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Today’s featured CRS article, “Central Bank Digital Currencies,” explores what digital currency is, and how banking and financial authorities are approaching creating a standardized digital currency. This article falls under the issue area of Finance and Financial Sector. From the CRS:
Policymakers have debated whether the Federal Reserve (Fed) should create a central bank digital currency (CBDC) — a “digital dollar.” A CBDC would share some of the features of cryptocurrencies (crypto) — that is, private digital currencies such as Bitcoin, which are unsupported by any government authority. Although no major central bank has formally launched a CBDC (beyond a pilot project) to date, this In Focus describes how foreign central banks, the U.S. Treasury, and the Fed are approaching the issue and discusses policy issues.
Interested readers can find the full article here.
