While regulatory efforts for the cryptocurrency industry continue in the USA, statements came from FED member Michael Barr.
According to Reuters, in his speech at a fintech conference in Philadelphia, FED Vice Chairman Michael Barr said that the FED is far from deciding to issue its own digital currency (CBDC).
Stating that the FED will only move forward on issuing a CBDC if the US Congress authorizes it, Michael Barr said:
“In my view, the Fed, as both the issuer of US currency and the operator of the payments system, must fully understand CBDC developments.
Of course, review and research are ongoing and the FED is still in the basic research phase on CBDC. “We are a long way from the decision to issue CBDC.”
Barr's CBDC statements coincide with those of FED President Jerome Powell. Because Powell, in his previous statements, said that the FED would not issue a CBDC without explicit permission from Congress.
Stating that at this point, his concerns against CBDCs without legal oversight continue, Barr continued his words as follows:
“I remain deeply concerned about the issuance of stablecoins without strong federal oversight.
If non-federally regulated stablecoins become a common means of payment and store of value, they could pose significant risks to financial stability, monetary policy and the US payment system.
“It is important to establish the legal and regulatory framework before significant risks arise.”
*This is not investment advice.