Margaret Tahyar quoted in S&P Global on prospects for a central bank digital currency

Davis Polk Financial Institutions Group co-head Margaret Tahyar was quoted in an S&P Global article discussing the June 9 Senate hearing on the prospects for a central bank digital currency (CBDC). Tahyar noted that the framework for currency distribution is the most important structural element of any CBDC. She also noted that the key design choice is whether the digital dollar is distributed to consumers and businesses indirectly through the banking system or directly by the Federal Reserve Banks. The impact on the banking sector, and the allocation of credit, is different in the two options.

“Central bank digital currency to be put under microscope at Senate hearing,” S&P Global  (June 9, 2021)