MNI: Ex-Fed's Warsh Comes Out Strongly Against Digital Dollar

Former Federal Reserve Board Governor Kevin Warsh said Friday it would be a terrible idea for the United States to pursue a digital dollar or central bank digital currency because it would raise privacy concerns and raise the risk of political interference in the Fed's affairs. 

"In a word, no," he said in response to a question about whether the adoption of a digital currency by the Federal Reserve should be considered. "I think it's ahistorical and, frankly, anti-American."

Warsh added that there would be major privacy concerns involved in the creation of a digital dollar, in addition to the possible risk of co-mingling fiscal and monetary policy. 

"I can think of few things more dangerous than if 300 million Americans had the equivalent of a wallet at the Federal Reserve," he said at the Reagan National Economic Forum. "The next crisis happens. Congress acts slowly. Lobbyists come to Washington and a bunch of politicians say, 'Well, we really can't fill those wallets. Why don't you guys just do it?'"(See MNI POLICY: Warsh Could Reshape Fed On Rates, Communication)