Fed's Quarles says he doesn't see rationale for central bank digital currency

(Reuters) - Federal Reserve Governor Randal Quarles, until recently the U.S. central bank's top financial regulator, on Wednesday said he does not understand the arguments in favor of issuing a central bank digital currency.

"Until somebody answers me the question why, I don't understand why we would devote the enormous amount of resources and the technological risk and the significant disruption to the current operation of the financial system that would come from the central bank saying we are going to provide this digital currency," Quarles said at a Milken Institute conference.

It's also unclear how a central bank digital currency could address financial inclusion concerns, he added, noting that this is one argument proponents of a CBDC put forth.

Reporting by Ann Saphir; Editing by Andrea Ricci

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.

Monetary-driven precious metals outperform major base metals

Gold stocks hit by plunging equities markets

Gold stocks down as metal and equities momentum fades

Another Kazatomprom guidance announcement shakes uranium price

Major monetary drivers still supporting gold