July 29, 2021

Why does the Federal Reserve need a digital currency?

Featuring Yaya J. Fanusie

Source: Quartz

Journalist John Detrixhe

Digital money is nothing new—debit and credit cards have been with us for years. What’s changed is its pervasiveness. With fewer people carrying paper money, and with some places no longer accepting it, we’ve become ever more reliant on electronic cash provided by commercial institutions, from PayPal to Visa.

As physical cash goes away, so do the properties that make it special. Cash allows people to transact without a bank account, without fees, and without a middle man in the way of their access to currency issued directly by the central bank, the lender of last resort and the bedrock of the financial system.

Read the full story and more from Quartz.

Authors

  • Yaya J. Fanusie

    Adjunct Senior Fellow, Energy, Economics and Security Program

    Yaya J. Fanusie is an Adjunct Senior Fellow at the Center for a New American Security (CNAS). His research focuses on the national security implications of cryptocurrencies an...