> The Federal Reserve Act does not authorize direct Federal Reserve accounts for individuals, and such accounts would represent a significant expansion of the Federal Reserve’s role in the financial system and the economy. Under an intermediated model, the private sector would offer accounts or digital wallets to facilitate the management of CBDC holdings and payments. Potential intermediaries could include commercial banks and regulated nonbank financial service providers, and would operate in an open market for CBDC services.
They're aware they have the opportunity to use a CBDC to eliminate retail banks but they're choosing not to do it.
> 15. Should a CBDC pay interest? If so, why and how? If not, why not?
Hadn't thought of interest on a CBDC. I guess it's an obvious knob for a central bank
From my brief skim the doc looks thoughtful and useful. I especially like the list of questions under "CBDC Benefits, Risks, and Policy Considerations"
They're aware they have the opportunity to use a CBDC to eliminate retail banks but they're choosing not to do it.