Christopher Waller, Federal Reserve governor, explained his doubts about Central Bank Digital currency. But in contrast to CBDCs, he praised that private crypto is better.
In a speech, on Aug. 5, Federal Reserve governor Christopher Waller talked about the doubts that he have with the adoption of CBDCs. According to him financial Monetary authorities have lots of expectations with CBDCs but probably that cannot be achieved easily or may be not possible.
“I remain skeptical that a Federal Reserve CBDC would solve any major problem confronting the U.S. payment system”
Waller beilives that if America will launch CBDC then they are needed to compete with the private sector stable coins which is not an easy task because private Cryptocurrencies already made that position where CBDCs can’t reach because of the restriction of usage.
“In general, the government should compete with the private sector only to address market failures. This bedrock principle has stood America in good stead since its founding, and I don’t think that CBDCs are the case for making an exception.”
Waller talked about the legality issues of current time private stable coins. According to him, stablecoins can be Legalised in a particular framework while the regulation rules are still in pending status. But a better regulation framework will bring a better experience for people to use private sector coins. Through this statement he tried to make clear that legalization of Stablecoin is 100% sure in the future because a big part of the crypto community rely on stable coins for better trading techniques.
It is worth to note, Senator Pat Toomey, who has similar kind of thinking like Waller, said that “If you have stablecoins and cryptocurrencies in use then maybe there’s no need for CBDC”.