Michael Barr, the Vice Chair for Supervision at the Federal Reserve (FED), made statements at a conference held in Washington D.C. on Friday. In his remarks, Michael Barr touched upon various topics ranging from stablecoins to central bank digital currencies (CBDCs). The need for regulatory measures for stablecoins was emphasized in the statements. Furthermore, it was emphasized that although the FED continues to research CBDCs, it is still far from taking any concrete steps on the matter.
Remarks from the FED Official
Michael Barr, the Vice Chair for Supervision at the FED, made critical remarks during the week. Speaking at a conference held in Washington D.C. on Friday, the FED official addressed various topics including stablecoins and CBDCs.
Michael Barr expressed the need for the necessary regulatory framework for stablecoins. Barr stated that when a digital asset is pegged to fiat currencies issued by governments, it is used as a payment instrument and store of value, and thus “borrowing the confidence of central banks.”
The FED official emphasized that the current use of stablecoins necessitates the establishment of a regulatory framework, stating that if companies issuing stablecoins operate within an appropriate federal oversight framework, they will not threaten financial stability and payment system integrity. On the other hand, Michael Barr also mentioned CBDCs in his speech and underlined that the FED is currently far from taking any concrete steps on CBDCs.
CBDC Research Continues
In his speech on Friday, FED official Michael Barr also made statements regarding CBDCs. Barr stated that the Federal Reserve continues to conduct research on CBDCs.
However, like many FED officials in the past, including FED Chairman Jerome Powell, Michael Barr emphasized that although the FED continues to research CBDCs, it is still far from taking any concrete steps on the matter. Barr highlighted the need for congressional support for the FED to take a concrete step towards CBDCs.
