Fed Vice Chairman Barr Provides Update on CBDC Research and Ends Stablecoin Legislation
Michael Barr expressed “deep concern” about stablecoins and appreciated legislative efforts to address it at the fintech event in the Philadelphia Fed.
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The vice chairman of the Federal Reserve Bank spoke at the Philadelphia Fed's fintech event on September 8 about the central bank's role in financial innovation. Research and monitoring was the short answer, with a nod to the FedNow service.
In addition to the standard disclaimer that she doesn't make any decisions without congressional authorization, Barr provided insight into the Fed's "current direction" on research into the bank's digital currency central (CBDC). He called it “fundamental research […] that could support a CBDC payment base, or for other purposes in the existing payment system. »
Specifically, Barr mentioned the system architecture for recording transactions and ownership in ledgers and tokenization models. A FEDS Notes publication from the same day on wholesale CBDCs also highlighted that “the technology associated with tokenized platforms is not incompatible with existing central bank money functioning as a settlement asset.”
This speech on payments by Michael Barr, vice chairman of supervision at the Federal Reserve, features a punctuation mark rarely seen in the speech from the Fed: an exclamation mark! https://t.co/G8HIXuMvYx pic.twitter.com/F3GJezrs3N
— Brendan Pedersen (@BrendanPedersen) September 8, 2023Barr reminded her audience of the Fed's new activity oversight program, which she introduced last month. This dedicated team of supervisors can provide feedback that would allow a federally supervised bank to obtain...
Michael Barr expressed “deep concern” about stablecoins and appreciated legislative efforts to address it at the fintech event in the Philadelphia Fed.
News
Join us on social networks
The vice chairman of the Federal Reserve Bank spoke at the Philadelphia Fed's fintech event on September 8 about the central bank's role in financial innovation. Research and monitoring was the short answer, with a nod to the FedNow service.
In addition to the standard disclaimer that she doesn't make any decisions without congressional authorization, Barr provided insight into the Fed's "current direction" on research into the bank's digital currency central (CBDC). He called it “fundamental research […] that could support a CBDC payment base, or for other purposes in the existing payment system. »
Specifically, Barr mentioned the system architecture for recording transactions and ownership in ledgers and tokenization models. A FEDS Notes publication from the same day on wholesale CBDCs also highlighted that “the technology associated with tokenized platforms is not incompatible with existing central bank money functioning as a settlement asset.”
This speech on payments by Michael Barr, vice chairman of supervision at the Federal Reserve, features a punctuation mark rarely seen in the speech from the Fed: an exclamation mark! https://t.co/G8HIXuMvYx pic.twitter.com/F3GJezrs3N
— Brendan Pedersen (@BrendanPedersen) September 8, 2023Barr reminded her audience of the Fed's new activity oversight program, which she introduced last month. This dedicated team of supervisors can provide feedback that would allow a federally supervised bank to obtain...
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