The Federal Reserve should seriously consider its own crypto, the former head of the U.S. government's deposit insurance corporation wrote in an op-ed last week.
In a piece published Friday by Yahoo Finance, Sheila Bair, the former chair of the US Federal Deposit Insurance Corporation (FDIC), emphasized the pressing need for the Federal Reserve Bank to seriously consider the prospects of a central bank issued digital currency (CBDC).
"If it does not stay ahead of this technology, not only could banking be disrupted — but the Fed itself could also be at risk."
A CBDC, in theory, would not have the same kind of culpability to large fluctuations in value given proper oversight and management by a centralized authority. Beyond this, Bair points out that centralized digital currencies would be "much more effective tools for conducting monetary policy to address economic cycles."