U.S. Federal Reserve Governor Christopher Waller said on Thursday that many of the financial challenges that could be tackled by a central bank digital currency are already being addressed by other policies and he is skeptical the approach would improve the U.S. payments system.
In a detailed speech that rebutted many of the reasons provided by supporters of a central bank digital currency, or a CBDC, Waller pointed to private sector innovation and other policies that he said might do a better job when it comes to speeding up payments or lowering banking costs.
"I remain skeptical that a Federal Reserve CBDC would solve any major problem confronting the U.S. payment system," Waller said in remarks prepared for a virtual event organized by the American Enterprise Institute.
Waller also said he thought the government should not intervene in the economy unless there is a clear "market failure" that needs to be addressed, adding that a CBDC could disintermediate commercial banks and disrupt a financial system that works well.
(Reporting by Jonnelle Marte; Editing by Andrea Ricci) ((Jonnelle.Marte@thomsonreuters.com; +1 646 978 0908;))