Federal Reserve Governor Christopher Waller on Friday expressed doubts about the creation of a US central bank digital currency, saying the digital currency is likely unimportant to the long-term status of the dollar. American.

Waller made the comments while delivering a speech at a symposium sponsored by the Harvard National Security Journal in Cambridge, Massachusetts, on Friday.

The Fed Governor said that while his views on central bank digital currencies (CBDCs) are well known, he remains unconvinced that there is a compelling need for the Fed to create a digital currency.

Waller said that those who advocate for the development of a US CBDC often say that it is important for the long-term status of the dollar, especially as other major jurisdictions are moving toward CBDC adoption.

He disagreed with such claims, stating that: “The underlying reasons why the dollar is the dominant currency have little to do with technology, and I believe that the introduction of a CBDC would not affect those underlying reasons.”

The Fed Governor explained what could happen to the dollar’s role as the global reserve currency of choice if other countries adopted digital currencies and the US did not. He said the factors that make the dollar attractive for holding value and conducting international business will remain largely unchanged, and the challenges that a CBDC might solve could be met by other means.

Waller said: “The dollar serves as a safe, stable and reliable form of money around the world. I don’t think there are any implications here for the role of the United States in the global economy and financial system.” Therefore, he said that people should focus and talk about the relevant topics related to CBDC, such as its impacts on financial stability, payment system improvements and financial inclusion.

Waller’s comments come in response to recent arguments posted by his fellow board members and other lawmakers favoring the introduction of a US CBDC.

In July, Fed Vice Chairman Lael Brainard said a CBDC would be a “natural evolution” of the payments system and said digital currency could play a key role in protecting financial stability. Lawmakers like Rep. Jim Himes, D-Connecticut, have also been outspoken advocates for establishing a US central bank digital currency.

Digital currency remains a hot topic for the US government. In March, President Joe Biden issued an executive order on digital assets. And according to the report, Biden wants the US to lead a space where China is far more advanced with its Digital Yuan projects. But a digital dollar could take years to develop because different stakeholders see multiple problems with the Fed’s rollout of a digital currency.

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