On March 1, 2023, Nellie LiangUndersecretary of domestic finance at U.S. TreasuryA speech was given by, to the Atlantic Council In Washington Concerning the topic of central bank digital currencies, (CBDCs). Liang She explained that the CBDC is just one option. “upgrading the legacy capabilities of central bank money,” Members of the Treasury, Biden Administration and the Federal Reserve “will begin to meet regularly” Discuss the topic.
U.S. Treasury’s Nellie Liang Examines Key Considerations in Designing CBDC
The U.S. undersecretary of domestic finance Treasury, Nellie LiangThe speech was delivered by. Atlantic Council Titled “Next Steps in the Future of Money and Payments.” During The speech Liang Discussed U.S. President Joe Biden’s executive order, which called on the government to develop an approach for the digital currency sector. Liang It was also mentioned that some crypto-businesses collapsed last year. “runs on stablecoins,” And the “commingling of customer and firm assets.”
“All of these calamities reinforce the recommendations made for regulators to vigorously enforce existing laws to protect consumers,” Liang said. Her Speech mainly focused on central bank digital currency (CBDCs) as well as her beliefs “central banks are at the heart of the global monetary system.” She Further, it should be noted, that an important decision will be made about whether the government creates a wholesale CBDC or retail CBDC or both. Liang Plus, a CBDC can be added to your existing CBDC. “three core features.”
“First, a CBDC would be legal tender. Second, a CBDC would be convertible one-for-one into other forms of central bank money — reserve balances or paper currency. Third, a CBDC would clear and settle nearly instantly,” Liang said.
The Senior Treasury Representative stated that CBDC must address “global financial leadership,” “national security,” And “privacy,” It also has to address “illicit finance and inclusion.” She According to the U.S. CBDC Working Group These objectives are met and trade-offs are identified. Regarding inclusion, Liang It should be noted that the United States has a large unbanked populace and that a CBDC needs to be evaluated to determine whether it can promote banking. “inclusion and equity in the delivery of financial services.”
Liang She concluded her speech by noting that the U.S. government plans to meet regularly in order to discuss CBDCs. She The fact that 11 countries have already launched digital currencies for central banks has been highlighted, as well as the fact that many other jurisdictions are devoted to research and development of the idea.
“In the coming months, leaders from Treasury, the Federal Reserve, and White House offices, including the Council of Economic Advisors, National Economic Council, National Security Council, and Office of Science and Technology Policy, will begin gathering consistently to talk about a possible CBDC and other payments developments,” Liang She said this in her closing remarks.
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