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Nominee for Vice-Chairman FED Michael Barr at a Senate hearing pointed to the importance of creating a regulatory framework for stablecoins. If approved, he will focus on the tasks of banking regulation.
Barr cited the need to mitigate risks to financial stability. In his opinion, cryptocurrencies have “growth potential based on economic benefits,” but carry “some significant risks.” In particular, the possibility of panic among holders of “stablecoins”.
The main task in the regulation of digital assets, the candidate called the protection of investors, which is the prerogative of other agencies. So Barr reacted to the comment of Senator Elizabeth Warren, who touched on the topic of the collapse of Terra.
In addition to stablecoins, the scope of responsibility of the Deputy Chairman of the Fed also covers CBDC. For Barr, issuing a digital dollar is an issue that requires “scrupulous scrutiny.”
Earlier, Fed Chairman Jerome Powell noted that it is important for the United States not to be the first to issue cBDC, but to do it with the right approach.
Recall that US President Joe Biden proposed the candidacy of Michael Barr for the role of Vice Chairman of the FRC in April 2022.
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