China Is Showing Off the Digital Yuan at the Olympics. Can the U.S. Compete?

"A widely available CBDC would serve as a close--or, in the case of an interest-bearing CBDC, near-perfect--substitute for commercial bank money", the Fed wrote. Digital currency proponents think a CBDC could also be faster and cheaper to transmit, particularly for international payments, which today go through multiple banks. On the other hand, the Fed said the option of holding a safe digital currency could drain money from banks and raise the cost of credit. [Extracted from the article]