According to The Block, a cryptocurrency media outlet, Jess Cheng, Angela Lawson, and Paul Wang, who wrote the report, said, “Clear policy goals, comprehensive stakeholder support, strong legal framework, level High technology and market readiness are required.”
The authors said, “Because the CBDC requires many processes, structures, and tools, the (prerequisite) elements are not yet complete.” The Block said these factors are related to what Fed Chair Jerome Powell said about the CBDC “to be actively involved in cooperation with the outside world.”
The report appears to have been written to serve as a starting point for further discussion, not as a signal to determine the Fed’s action on the digital dollar. “Working with a comprehensive stakeholder and observing market readiness can communicate clear policy goals, and vice versa. “This report is not intended to determine how to present the prerequisites (required for CBDC), but rather to drive further research.”
The Block analyzed that the report reflects Powell’s view whether the legal framework operated by the Fed needs to be revised to account for the CBDC launch. The authors wrote, “We should look into whether further revisions to the Federal Reserve Act are needed in relation to the issuance of a universally used CBDC.”
The Block noted that the stakeholder-related section deserves attention as it addresses how the inclusive public and private participants will be affected and the degree of approval the CBDC will need to be successful.
In conclusion, the authors said that there is still considerable work to be done before the Fed can make a decision to move the CBDC forward. The report said, “Issuing a CBDC in the United States has never been easier. Several basic conditions will be required.”