Chris Waller, member of the Fed’s governing board, has said during a virtual seminar on national digital currencies that blockchain is completely overrated and some of the research on CBDCs is like commercials.
The official has stressed that the Fed has historically played a secondary role in private markets. There must be a market failure to launch a retail CBDC, but Waller doesn’t see it. He has added that works devoted to digital currency are more focused on its “bells and whistles”, distracting from the question of how much it is necessary for citizens.
Yale University professor Gary Gorton, who also took part in the event, objected to Waller noting the emergence of stablecoins, which became competitors to fiat, while before each country had sovereignty in this matter. He explained:
“The Fed will be in trouble if stablecoins become widespread. This is not an abstract thing, they are already affecting the money market.”