Randal K. Quarles, the Federal Reserve’s vice chair for supervision, suggested on Monday that the global rush to research and develop central bank digital currencies — often called C.B.D.C.s — reminds him of another four-letter abbreviation. Fear of missing out, or, as it is better known, FOMO.
Citing America’s “susceptibility to boosterism and the fear of missing out,” Mr. Quarles warned that the nation has a habit of falling victim to a “mass suspension of our critical thinking and to occasionally impetuous, deluded crazes or fads.” He invoked the parachute pants of the 1980s as a parallel to the current currency craze, noting that sometimes fads are just silly.
“But the consequences can also be more serious,” Mr. Quarles said, speaking from prepared remarks. “Which brings us to my topic today: central bank digital currencies.”
Mr. Quarles’s extremely skeptical take on the need for — and wisdom of — a…