Fed Governor Bowman questions necessity of U.S. digital currency

Federal Reserve Governor Michelle Bowman expressed skepticism over the possibility of a digital U.S. dollar, noting Tuesday the multiple risks such a system could impose. A central bank digital currency (CBDC) could intrude on the privacy of users and harm the banking system while providing few benefits that aren't otherwise available for banked and unbanked consumers alike, Bowman said in a speech. She also rejected the notion that a digital currency is needed to support the dollar, which she said is valued because of "the size of the U.S. economy, its deep and liquid financial markets, the strength of U.S. institutions, and its commitment to the rule of law," none of which would be buttressed by a central bank digital currency.