Ms. Brainard noted that the FRB's consideration of a U.S. CBDC must include an analysis of how the usage of a CBDC would affect financial stability both currently and in the future.
In a speech before the U.S. Monetary Policy Forum, Federal Reserve Board Governor Lael Brainard highlighted the increasing digitalization and decentralization of global finance and considered the implications of such trends for the financial system.
<p><span>The financial system is undergoing fast-moving changes associated with digitalization and decentralization. Some of these innovations hold considerable promise to reduce transaction costs and frictions, increase competition, and improve financial inclusion, but there are also potential risks. With technology driving profound change, it is important we prepare for the financial system of the future and not limit our thinking to the financial system of today.<a name="f1"></a></span></p>