Michael Barr, the Fed’s vice-president for supervision, cryptocurrency He said he had set up a “team of experts” to increase his control over the industry.
FED To Build A Cryptocurrency Team Of Experts
The name, one of the Fed’s top regulatory officials, said on Thursday that digital asset professionals are needed to “help them stay on top of new developments and make sure they stay up to date with what’s new in this industry.”
Barr, the Fed’s official with the most influence over regulating and overseeing cryptocurrencies, echoed comments from Fed Chairman Jerome Powell this week that the regulator hopes to protect innovations in the cryptocurrency space.
“Despite recent events, we haven’t overlooked the potential transformative impact these technologies can have on our financial system,” Barr said at an event held for the Peterson Institute for International Economics in Washington. However, there were also criticisms towards the sector.
“While cryptoassets are being launched as decentralized, new, highly centralized intermediaries have emerged that are not subject to or comply with proper regulation and control that continue to harm consumers,” said Barr, who once worked as a consultant at Ripple.
“Our overall stance is that at this stage of development, banks should take a cautious and cautious approach to engaging in crypto-asset-related activities and the crypto industry.”
He also directly addressed stablecoins, which has been a particular area of concern for the Fed since the failed Diem project. Wide-scale adoption of such tokens, which he describes as “unregulated private money subject to classical forms of risk,” could threaten the wider financial system, according to the official.
Barr argued that if stablecoins become widespread before regulations are introduced, “it could create enormous disruptions, not just for financial institutions, but for the people who can rely on such coins if they are widely adopted.”
*Not investment advice.
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