The Federal Reserve has discussed the potential implications of introducing a central bank digital currency (CBDC) in the United States, particularly in comparison to foreign CBDC developments.

While a stable foreign CBDC may not greatly affect the dollar's role as a store of value, there are concerns it could impact its function as a medium of exchange.

Led by Jerome Powell, the U.S. Federal Reserve has identified the development of a U.S. CBDC as a top priority to strengthen the dollar's global dominance.

A research paper from the Federal Reserve System's board of governors outlines both the benefits and challenges of CBDC implementation, aiming to address competitive pressures from international digital currencies. 

This cautious approach highlights the intricate considerations involved as the U.S. navigates the evolving landscape of digital currencies and their potential impacts on traditional financial systems and global economic dynamics.