Fed Seeks Public Feedback on U.S. Digital-Coin Issuance

The transcript discusses a Federal Reserve report on the potential implementation of a US central bank digital currency (CBDC). The report outlines the pros and cons of a digital dollar, highlighting benefits such as reduced credit risk and enhanced financial inclusion, while also addressing risks like changes to the financial system and privacy concerns. The Fed is seeking public comment and has not taken a position on issuing a CBDC. The process would require significant legislative action and raises questions about authority and regulatory involvement.

What is the Federal Reserve's current stance on issuing a Central Bank Digital Currency (CBDC)?

• They have already issued a CBDC.

• They have not taken a position on issuing a CBDC.

• They are against issuing a CBDC.

• They are in favor of issuing a CBDC.

Which of the following is a potential benefit of a digital dollar mentioned in the report?

• Decreased financial inclusion

• Cheaper cross-border payments

• Higher transaction costs

• Increased credit risk

What is a significant risk associated with the introduction of a digital dollar?

• It would increase the number of bank accounts.

• It could reduce credit availability.

• It would decrease the Federal Reserve's balance sheet.

• It would eliminate the need for banks.

What would be required for the Federal Reserve to move forward with a CBDC?

• Approval from the President

• A public referendum

• Legislation passed by Congress

• A decision by the Supreme Court

Who would need to be involved in the process of creating a CBDC according to the report?

• The President and the military

• Congress and other regulatory agencies

• The Federal Reserve and the Supreme Court

• Only the Federal Reserve