April 18 (Reuters) - A so-called "wholesale" central
bank digital currency could hold promise for the future
settlement of certain financial market transactions and
processing international payments, Federal Reserve Governor
Michelle Bowman said on Tuesday.
While a digital dollar could make sense for interbank
transactions, there could be unintended consequences like
disruptions to the banking system if the Fed were to design a
central bank digital currency that would be directly available
to the public, Bowman said in prepared remarks for an event at
Georgetown University's Psaros Center for Financial Markets and
Policy.
The U.S. central bank has not yet said if it would embark on
an effort to create a central bank digital currency, and has
previously said it would seek authorization from Congress and
the executive branch before doing so.
(Reporting by Ann Saphir and Hannah Lang; Editing by Paul
Simao)
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