TechFlow news, according to Atul Bhatia, an analyst at Royal Bank of Canada, the Federal Reserve is likely to take a gradual approach toward developing a CBDC—integrating new technologies and working within the existing payment infrastructure—rather than risk driving a transformation of the payment infrastructure.
"Despite significant hype around CBDCs, we see a range of security, privacy, and governance concerns that we believe outweigh the theoretical benefits," said Bhatia. "In the foreseeable future, commercial banks and cash will remain central to the U.S. financial architecture."
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