The U.S. Federal Reserve plans to publish a discussion paper this summer that will have a "particular focus on the possibility of issuing a U.S. central bank digital currency," according to a press release today.
The press release added that the paper will complement research that the Federal Reserve is already undertaking.
Federal Reserve chairman Jerome Powell highlighted the agency's goals of promoting financial stability and ensuring the payments system is efficient. "In pursuit of these core functions we have been carefully monitoring and adapting to the technological innovations now transforming the world of payments, finance, and banking," he said.
The press release stated that the main concerns are whether the U.S. could improve the current domestic payments system. Powell said that the CBDC would be designed to work alongside the current payments systems, including cash, rather than replacing them.
"The design of a CBDC would raise important monetary policy, financial stability, consumer protection, legal, and privacy considerations and will require careful thought and analysis—including input from the public and elected officials," he said.