Fed Governor Bowman Reinforces CBDC Skepticism, Shows Preference for Stablecoins

Federal Reserve Board Governor Michelle Bowman expressed her thoughts on financial innovation during a speech at Harvard Law School on October 17. This was not the first time Bowman addressed this subject, and her outlook appears to be becoming more cautious.

In her remarks, Bowman delved into the topics of central bank digital currencies (CBDCs) and stablecoins. She also examined the potential of “unified ledger” technology and distributed ledger technology as means to bridge current financial systems, as well as improve existing technologies. Bowman reiterated concerns she has previously voiced regarding the necessity of such innovations, suggesting that banks could play a crucial role in curbing government overreach.