(Bloomberg) -- The Federal Reserve’s top bank watchdog said officials continue to study a potential digital dollar, and haven’t yet made a decision whether to recommend that the US central bank launch a virtual currency.

Barr reiterated Friday that the Fed wouldn’t move forward with a central bank digital currency, or CBDC, without the backing of Congress and the executive branch of the US government. He gave no timeline for a Fed decision on whether to recommend such a move.

“With this in mind, learning from both domestic and international experimentation can aid decisionmakers in understanding how we can best support responsible innovation that safeguards the safety and efficiency of the US payments system,” Barr said in remarks prepared for a Fed conference on electronic payments.

Supporters say a US CBDC could boost financial inclusion and lower the cost of electronic payments. However, others including Fed Governor Michelle Bowman have said that a CBDC could have unintended consequences for the US banking system and raise privacy concerns. 

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