Fed governor Randal Quarles said he wasn’t sure how CBDCs would address concerns about financial inclusion.
Quarles expressed that he did not understand the rationale behind the CBDC issuance. He is also undecided on how CBDCs can address financial inclusion concerns, as supporters claim.
Quarles, who also chairs the Financial Stability Board, an international organization that follows global financial trends, continued to approach CBDC, although he was more open to the idea of stablecoins.
Quarles wonders how the CBDC can foster innovation. It argues, however, that it will be difficult and costly to manage, and open to cyberattacks and other security threats.