Digital Dollar Poses ‘Significant Risks’ to Consumer Privacy, Financial System: Fed Governor

Federal Reserve Governor Michelle Bowman expressed further skepticism surrounding the necessity and efficacy of a central bank digital currency.

Federal Reserve Governor Michelle Bowman attends an event in Washington on Oct. 4, 2019. Eric Baradat/AFP/Getty Images

The creation of a central bank digital currency (CBDC) presents “significant risks” for the financial system and consumer privacy, says Federal Reserve Governor Michelle Bowman.

Appearing at a Harvard Law School Program on International Financial Systems roundtable on Oct. 17, Ms. Bowman conceded that the benefits of a digital dollar are uncertain and that there could be “unintended consequences” for the banking sector.