bankperspectives - on - central - bank - digital - currencies. aspx ; jim s. cunha, “ boston fed ’ s digital dollar research project honors 2 hamiltons, alexander and margaret, ” federal reserve bank of boston, february 25, 2021, https : / / www. bostonfed. org / news - and - events / news / 2021 / 02 / how - did - the - feds - digital - dollar - project - get - its - nameproject - hamilton. aspx ; and lael brainard, “ an update on digital currencies, ” remarks at the federal reserve bank of san francisco innovation office hours, august 13, 2020, https : / / www. federalreserve. gov / newsevents / speech / brainard20200813a. htm. - 11 actively monitoring developments in this area, engaging with the industry and other regulators, and working to identify any regulatory, supervisory, and oversight framework gaps. given that decisions at one banking agency can have implications for the other agencies, it is important that regulators work together to develop common approaches to ensure that banks are appropriately identifying, monitoring, and managing risks associated with digital assets. public engagement in light of the growing role of digital private money in the broader migration to digital payments, the potential use of foreign cbdcs in cross - border payments, and the importance of financial inclusion, the federal reserve is stepping up its research and public engagement on a digital version of the u. s. dollar. members of congress and executive agencies are similarly exploring this important issue. as noted above, to help inform these efforts, the federal reserve plans to issue a discussion paper to solicit public comment on a range of questions related to payments, financial inclusion, data privacy, and information security, with regard to a cbdc in the u. s. context. 17 the federal reserve remains committed to ensuring a safe, inclusive, efficient, and innovative payments system that works for all americans. see jerome powell, “ federal reserve chair jerome h. powell outlines the federal reserve ’ s response to technological advances driving rapid change in the global payments landscape, ” board of governors of the federal reserve system news release, may 20, 2021, https : / / www. federalreserve. gov / newsevents / pressreleases / other20210520b. htm.

for release on delivery 9 : 00 a. m. edt may 24, 2021 private money and central bank money as payments go digital : an update on cbdcs remarks by lael brainard member board of governors of the federal reserve system at the consensus by coindesk 2021 conference washington, d. c. ( via webcast ) may 24, 2021 technology is driving dramatic change in the u. s. payments system, which is a vital infrastructure that touches everyone. 1 the pandemic accelerated the migration to contactless transactions and highlighted the importance of access to safe, timely, and low - cost payments for all. with technology platforms introducing digital private money into the u. s. payments system, and foreign authorities exploring the potential for central bank digital currencies ( cbdcs ) in cross - border payments, the federal reserve is stepping up its research and public engagement on cbdcs. as chair powell discussed last week, an important early step on public engagement is a plan to publish a discussion paper this summer to lay out the federal reserve board ’ s current thinking on digital payments, with a particular focus on the benefits and risks associated with cbdc in the u. s. context. 2 sharpening the focus on cbdcs four developments — 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 — are sharpening the focus on cbdcs. first, some technology platforms are developing stablecoins for use in payments networks. 3 a stablecoin is a type of digital asset whose value is tied in some way to traditional stores of value, such as government - issued, or fiat, currencies or gold. stablecoins vary widely in the assets they are linked to, the ability of users to redeem the stablecoin claims for the i am grateful to alexandra fernandez, sonja danburg, david mills, and david pope of the federal reserve board for their assistance in preparing this text. these are my own views and do not necessarily reflect those of the federal reserve board or the federal open market committee. see jerome powell, “ federal reserve chair jerome h. powell outlines the federal reserve ’ s response to technological advances driving rapid change in the global payments landscape, ” board of governors of the federal reserve system news release, may 20, 2021, https : / / www. federalreserve. gov / newsevents