Stablecoins arrived, governments saw the potential, and now everyone wants a CBDC. The most recent case is the Federal Reserve Bank of San Francisco. Is a Central Bank Digital Currency (CBDC) on the lookout?
On February 18, the San Francisco Fed posted a job opening for a Senior Applications Architect in digital currency. The Senior Applications Architect hired will be vital in designing a CBDC and overseeing its development.
In less than 24 hours, there were already more than forty-five applicants.
According to the job posting, they will mentor engineers and develop a CBDC roadmap. There is also a lead application developer position and a lead application developer position for digital currency.
The Fed aims to understand better the cost and benefits of potential technologies for CBDCs. All signs are that the Fed is taking the development of its own CBDC very seriously, but what's all the fuss about?
Well, CBDCs, for now, are a technology of recent implementation. Banks and governments are trying to understand how feasible it is to introduce a digital currency. They also want to understand the future impact of these on monetary and fiscal policies.
CBDC would be a stablecoin backed by a central bank. Opening the doors to CBDC would be opening the doors to blockchain and the digitization of the economy.
Implementing a CBDC would increase the security and efficiency of wholesale and retail payment systems. It could also help countries that have decided to go cashless.
This job opening, however, does not indicate that the U.S. will develop a CBDC anytime soon. For now, it is a first step to study how achievable it would be and understand if it is worth the effort.