The U.S. Federal Reserve released its plans to initiate a review of the risks and benefits of issuing a U.S. digital currency, or Central Bank Digital Currency (CBDC), following the current global trend, WSJ reports. Previously, Hong Kong released one of the first technical whitepapers for its CBDC.
Though the review process has been initiated, the final decision may not be finalized anytime soon while officials remain divided on the issue. In contrary to private cryptocurrencies similar to Bitcoin and Monero, the country’s CBDC will be fully backed by the central bank, a government entity just like the actual paper currency.
