Comments on USD Central Bank Digital Currency

The Board of Governors of the Federal Reserve System has engaged the public in its consideration of a USD Central Bank Digital Currency (USD CBDC). The Board has framed USD CBDC issues principally around payment market access and efficiency, tending to overlook questions CBDC raises about the nature, size and scope of the Federal Reserve's operations and services. This paper re-frames the question by highlighting the implications of USD CBDC for the monetary base and expansion of the Federal Reserve safety net to include the general public. Alternative approaches are suggested for broadening public access to safe assets, should there be a need, and the Board is encouraged to prioritize issues related to the Federal Reserve balance sheet and the conduct of monetary policy