Michael Barr, the Fed’s senior bank watchdog, expressed concern about unregulated stablecoins.
The Fed, the central bank of the United States, has expressed concern about stablecoins at various times. The Fed wants to dominate and have a say in all areas where the US dollar enters.
A new addition to the Fed’s rhetoric came from Michael Barr, the Fed’s top bank watchdog. Barr made the statements at a fintech conference in Philadelphia. The Fed official said he was concerned about the unregulated state of stablecoins.
Fed official Barr discusses stablecoins
During the day, Fed chief executive Michael Barr made a speech. Barr discussed stablecoins and CBDCs. Barr has made it clear that the Fed will dominate wherever the US dollar enters.
Speaking at the fintech meeting, the Fed official said, “If non-federally regulated stablecoins become a pervasive means of payment and store of value, they could pose significant risks to financial stability, monetary policy and the US payment system.”
Expressing his concern about the current state of stablecoins, Barr drew attention to the need for rapid and sharp regulation. Another issue Barr touched on was the CBDC. When asked whether the CBDC should be issued, Barr replied “it’s a long way”. According to the Fed official, the Fed does not have a single say in the progress of the CBDC. Washington’s efforts are needed for this.
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