Lael Brainard, a member of the Federal Reserve’s Board of Governors, encouraged the United States to be a leader in research and policy regarding central bank digital currencies, or CBDCs, due to potential international developments.

Brainard prepared remarks for Friday’s U.S Monetary Policy Forum, New York. the People’s Bank of China’s pilot program for its digital yuan could have implications on the dollar’s dominance in cross-border payments and payment systems. A digital dollar may allow individuals around the globe to continue to depend on their fiat counterpart.