A Sort-Of CBDC and the Future of Federal Housing Finance

Although we have done extensive analysis of a U.S. central-bank digital currency (CBDC) in our sister analytical service, we have not viewed as it as an imminent strategic consideration for housing-finance agencies and financial institutions. However, a widely noted new paper on an alternative – Treasury accounts highlights a CBDC-like construct that could be implemented far more quickly than a Fed-based CBDC with significant residential-finance impact. As a result, we here assess this concept and its consequences.