The Federal Reserve Governor reportedly believed that America needs to be in the leading position, regarding the development of CBDC, in order to reinforce the U.S. dollar’s current stance as a global reserve currency.

Specifically, Federal Reserve Governor Lael Brainard reportedly remarked that pioneering CBDC initiatives could create noteworthy impact on the international financial network, and hence called for the US to stay ahead in the race for designing CBDCs. 

“Given the potential for CBDCs to gain prominence in cross-border payments and the reserve currency role of the dollar, it is vital for the United States to be at the table in the development of cross-border standards.”

The Fed is reportedly re-directing its concentration on four primary aspects of CBDC development — “the growing role of digital private money, the migration to digital payments, plans for the use of foreign CBDCs in cross-border payments, and concerns about financial exclusion.”

The Governor reportedly pointed out numerous possible pros regarding putting a CBDC in official circulation, mentioning the ongoing global pandemic had boosted the transition process to digital payments throughout US households, further noting that the distribution work of prepaid debit cards as relief required “weeks”, for households without up-to-date bank information filed with the Internal Revenue Service.

“We must explore—and try to anticipate—the extent to which households’ and businesses’ needs and preferences may migrate further to digital payments over time,”

Brainard additionally argued the possible risks the rapid adoption rate of private stablecoins could pose, reportedly recommending that CBDCs could equip people with the utilities and advantages, related with the currently operational USD stable tokens, at no cost of undermining the authority’s control over monetary policy.