The Fed’s top bank watchdog, Michael Barr, expressed concern about unregulated stablecoins.
The Fed, the central bank of the United States, has expressed concerns about stablecoins at various times. The Fed wants to dominate all areas where the US dollar enters and have a say in these areas.
A new addition to the Fed’s rhetoric came from Michael Barr, the Fed’s senior bank watchdog. Barr made the remarks at a fintech conference in Philadelphia. Fed official said he is concerned about the unregulated state of stablecoins.
Fed official Barr discussed stablecoins
During the day, Fed senior manager Michael Barr gave a speech. Barr discussed stablecoins and CBDCs. Barr openly expressed the Fed’s desire to dominate wherever the US dollar enters.
Speaking at the Fintech meeting, the Fed official said, “ If non-federally regulated stablecoins become a widespread means of payment and store of value, they could pose significant risks to financial stability, monetary policy, and the U.S. payments system.“
Expressing his concern about the current situation of stablecoins, Barr pointed out the need for quick and sharp regulation. Another issue Barr touched upon was CBDC. When asked whether CBDC would be issued, Barr answered “it’s a long way”. According to the Fed official, the Fed does not have a sole say in the progress of CBDC. This also requires Washington’s efforts.
