Fed focuses on CBDC research and stablecoin regulation

 The Federal Reserve (Fed) continues to research central bank digital currencies (CBDCs) and stablecoin-related technologies.

Vice Chairman Michael Barr said the Fed continues its CBDC and stablecoin research process, focusing on "end-to-end system architecture" such as the use of ledgers, encryption, and asset management models for intermediary CBDCs .

Hãy Làm Theo Các Bước Nhé

Barr affirmed the Fed's position that there cannot be a digital USD without the support of Congress. Learning from domestic and international trials helps regulators understand more about the problem, thereby making responsible decisions.

Barr said the government is actively developing a set of stablecoin regulations. This type of asset "borrows the trust of the central bank" and requires strict management. 

Previously, the Fed's CBDC research faced opposition from many politicians. The issue of cryptocurrency and digital USD continues to cause debate in the US Senate and House of Representatives.

In the UK, Sir Jon Cunliffe - deputy governor of the Bank of England (BOE) - said there has been no official decision on using or banning CBDC.

However, many studies indicate that technological advances in the payments sector could spur the birth of a digital pound by the end of the decade. Cunliffe commits to BOE releasing a regulatory discussion document for stablecoins soon.

The top user concerns surrounding CBDCs are privacy, programmability, and the decline in value of cash. Opponents of CBDC argue that the new currency disintermediates the banking system and threatens financial stability.

Source: coinbay.io