The Federal Reserve has been diligently evaluating the potential implications of introducing a CBDC, undertaking a series of studies, pilot trials, and experiments to comprehensively assess the technology and its inherent limitations.
Simultaneously, the U.S. central bank has already developed a real-time payment system known as FedNow. While resembling a CBDC in enabling instantaneous digital settlements, it exclusively functions among depository institutions and abstains from utilizing blockchain technology.
Benefits of CBDC Recognized
Bhatia highlighted the prevailing inefficiencies within existing financial settlement systems and pinpointed specific advantages that a digital dollar could introduce.