Federal Reserve Report Spotlights Risks of Cryptocurrencies

WASHINGTON, D.C. – The Federal Reserve today released a long-awaited report on cryptocurrencies sponsored by the Federal Reserve, known as a central bank digital currency. Bartlett Naylor, financial policy advocate for Public Citizen, released the following statement:

“With cryptocurrencies buffeted by scammers, abused for illicit transactions, and taxing energy resources, it’s good to see that the agency most responsible for overseeing the integrity of how Americans move their money has its oars in the water.

“That the Fed didn’t promote its own coin option in the report may reflect chilly politics on Capitol Hill, where crypto champions fear that a Fed digital coin would supplant the private sector’s main claim – namely a more efficient, cheaper payment system. But the report clearly demonstrates that the Fed may be a better option, which any sincere policymaker (looking at you, members of Congress) must acknowledge.

“Whether or not the Fed issues a digital coin, attention to improving the payment system is most welcome, with an eye on reforms that will best help lower income Americans who pay the highest fees for basic financial services.”