1 year ago
Michael Barr, vice seat for supervision astatine the U.S. Federal Reserve, commented connected matters related to stablecoins and CBDCs connected Nov. 7.
According to reports from Bloomberg, Barr said:
“There is involvement successful strong, national regularisation of stablecoins that makes definite the Federal Reserve tin approve, modulate and enforce against stablecoin issuers, including wallets.”
Barr said that the U.S. needs a “strong framework” for stablecoins but implied that it is not the Federal Reserve’s occupation to marque those rules. Rather, helium said that it is “better if Congress tin determine the rules of the road.” Reports from August, however, suggest that Republican lawmakers are opposed to definite stablecoin rules projected by the Fed.
Other reports from Fortune bespeak that Barr commented straight connected cardinal slope integer currencies (CBDCs), oregon dollar-pegged integer assets issued by the government.
Barr said that the Federal Reserve has not yet decided whether issuing specified a CBDC would beryllium a bully thought oregon not — successful enactment with his earlier statements.
That connection besides agrees with the Federal Reserve’s authoritative FAQ page, which says that it has not yet made immoderate determination connected whether to a CBDC. It besides confirms that Congressional support would beryllium indispensable to contented specified an asset.
Barr took connected Fed relation successful aboriginal 2022
Barr took connected his existent relation aft the Biden medication announced his information successful April 2022. He has antecedently commented connected different matters related to cryptocurrency.
In March 2023, the Federal Reserve said that Barr would pb a reappraisal of its ain oversight of the failed crypto-friendly bank, Silicon Valley Bank. Later, Barr suggested that the bank’s nonaccomplishment was owed to partially contagion wrong the American banking strategy portion besides discussing the Federal Reserve’s ain relation successful predicting slope failures.
In October 2022, Barr advised banks moving with crypto deposits to beryllium alert of increased liquidity risks and told banks to beryllium cautious erstwhile serving crypto firms.
The station Federal Reserve’s Michael Barr comments connected stablecoin regulations, CBDCs appeared archetypal connected CryptoSlate.
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