Fed's Brainard: There is no compelling need for a Fed-issued digital currency

Headlines crossed the wires from the Federal Reserve (Fed) Governor Lael Brainard, via Reuters, from her prepared remarks for delivery to a Fed conference in San Francisco.

Brainard made no comments on the monetary policy or on the economy.

Key Points:

Cryptocurrencies highlight powerful technologies, pose serious challenges.

Bitcoin price swings limit its use as money.

Cryptocurrencies need better security.

Cryptocurrencies are vulnerable to money laundering.

Cryptocurrencies currently do not pose financial stability threat, will continue to monitor.

Central bank digital currencies face technical, operational challenges.

There is no compelling need for a Fed-issued digital currency.

There may be value in digital currencies for restricted use, such as bank-to-bank transactions.

Technology underlying digital currencies holds promise for streamlining payments.