Jerome Powell: CBDC Report Coming in Early September

Jerome Powell: CBDC Report Coming in Early September

U.S. Federal Reserve Chair Jerome Powell said an anticipated Fed report on central bank digital currencies would come in early September during a Wednesday hearing before the U.S. House Committee on Financial Services.

In response a question from Ranking Member Patrick McHenry (R-N.C.), Powell said the report will outline the benefits and risks of CBDCs, as well as cryptocurrencies and stablecoins more broadly. In the hearing, Powell reiterated that stablecoins need regulation if they are going to play a major part within U.S. payments networks.

“Stablecoins certainly have some advantages in terms of faster payment systems and have some attributes of CBDCs but there are some risks with stablecoins right now,” Powell said. “I think the issue is that stablecoins are a lot like money market funds or bank deposits or a narrow bank.”

Powell had previously said the report would be published in July.

The Boston branch of the Federal Reserve announced last year it was conducting research into what a possible CBDC would need to be useful within the U.S., and is expected to write the document.