Federal Reserve Says Nature of Money and Payments Changing in Increasingly Digital Environment

The U.S. Federal Reserve is working to keep in step with a world that’s going digital.

In a new job advertisement, the Fed says that it is looking for a manager for its digital innovations policy program at its reserve bank operations and payment systems (RBOPS) division.

Among other responsibilities, the successful candidate will oversee aspects of the program that concentrate on issues regarding the future of payments.

“This includes the changing nature of money and payments platforms in an increasingly digital environment, the potential benefits and risks associated with digital assets such as stablecoins and central bank digital currencies (CBDC), the impact of digital innovations on the Fed’s operation and oversight of financial services, and the supervisory and regulatory framework for emerging payments platforms, activities and institutions.”

The job posting adds that the chosen candidate will be required to work with a “range of domestic and international partners on digital innovations topics.”

Last year, Chairman Jerome Powell said the Fed is closely examining the risks and trade-offs of creating the digital version of the US dollar.

“We do think it’s more important to get it right than to be the first. And getting it right means that we not only look at the potential benefits of a CBDC but also the potential risks and also recognize the important trade-offs that have to be thought through carefully.

We have a responsibility both to the U.S and to the world that any steps taken for US digital currency be taken safely. We’re absolutely committed to the soundness of the dollar into safe and efficient U.S dollar payment system.

So, in addition to assessing the benefits, and there may well be benefits, there are also some quite difficult policy and operational questions that need to be thoroughly evaluated.”

 

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