Fed’s Kaplan: can see reasons for U.S. central bank digital currency

FILE PHOTO: Dallas Federal Reserve Bank President Robert Kaplan speaks during an interview in his office at the bank's headquarters in Dallas
FILE PHOTO: Dallas Federal Reserve Bank President Robert Kaplan speaks during an interview in his office at the bank's headquarters in Dallas, Texas, U.S. January 9, 2020. REUTERS/ Ann Saphir

August 20, 2021

(Reuters) – Dallas Federal Reserve President Robert Kaplan said on Friday he could see the U.S. central bank eventually issuing its own digital currency, calling it the “last mile” in a digitalization of the payment system that is already in train.

“I would imagine in the years ahead — it’s something the Fed is actively working on now — and I can see reasons why that will eventually get developed; China is already doing their own experiment with it,” he said in a virtual appearance at Texas Tech. Still, he added, the Fed is a “long way” from making a decision and is currently studying the issues, including the potential impact on banks.

(Reporting by Ann Saphir; editing by Jonathan Oatis)