Circle Advises the U.S. Federal Reserve Not to Issue Central Bank Digital Currency

$USDC issuer Circle published an open letter in response to the U.S. Federal Reserve’s discussion paper on the potential impact of a central bank digital currency (CBDC). Circle says that the risks of a U.S. CBDC outweigh the potential benefits, which are already being met by existing private-sector, open blockchain-based payment innovations like $USDC. A U.S. CBDC would take years to create, but would not be superior to $USDC. Circle also addresses that a CBDC would stifle innovation, exacerbate financial inclusion and access, and threaten the existing banking system.