As early as this week, the Federal Reserve plans to start a review of the potential benefits and risks of issuing a central bank digital currency (CBDC), but Fed officials are unlikely to make a decision on the CBDC soon, the Wall Street Journal reports. The move comes after ForexLive reported that the People's Bank of China will push ahead with R&D of its digital yuan. Fed officials, though, are divided on the prospect of issuing a digital dollar, the WSJ said. Unlike private cryptocurrencies, like bitcoin, a Fed CBDC would be issued and backed by the U.S. central bank, in the same way that U.S. physical dollar bills and coins are. The review would be launched by releasing a paper analyzing the digital currency and seeking a public comment, the WSJ said. It's unlikely to contain a firm policy recommendation, it added. At the his post-monetary policy decision press
