Blockchain Association Executive Director Kristin Smith raised privacy concerns regarding a possible digital dollar during a forum held at the Brookings Institution on Thursday.
Smith took part in a virtual event focused on the future of digital assets and payment systems, along with Treasury Department Under-Secretary of Internal Finance Nellie Liang and other financial policy experts.
Discussions about a digital currency to be issued by the state continue to intensify in Washington.
The US Federal Reserve is considering issuing a digital dollar that will act as a national stablecoin. The Biden administration released a series of digital asset reports on the subject last week.
Lawmakers on the House Financial Services Committee have drafted a new stablecoin bill that would require the Fed to continue its work on the issue, requiring it to report its thoughts on a digital dollar to Congress.
On the other hand, Fed Vice Chairman Lael Brainard said that a digital dollar decision is not possible anytime soon.
He noted that it will be considered whether the issuance of the digital dollar will displace banks, credit institutions and other financial institutions.
For now, the Central Bank seems to be focused on FedNow, the fast payment project that it has been working on for a long time and plans to implement next year.
Smith said, when the Fed decides on the digital dollar, bitcoin and he thinks stablecoins can make the digital dollar irrelevant.
*Not investment advice.
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