Business

Biden’s choice for Fed vice chair for guidance requires congressional action on stablecoins By Cointelegraph

Biden’s choice for Fed vice chair for guidance requires congressional action on stablecoins

Michael Barr, a law teacher and previous board of advisers member of Labs who is United States President Joe Biden’s choice for vice chair for guidance at the Federal Reserve, required U.S. legislators to manage stablecoins in an effort to address “financial stability risks.”

In a verification hearing prior to the Senate Banking Committee on Thursday, Barr stated ingenious innovations consisting of cryptocurrencies had “some potential for upside in terms of economic benefit” however likewise “some significant risks,” pointing out the requirement for a regulative structure on stablecoins to avoid the danger of runs. Barr included that the Fed possibly launching a reserve bank digital currency was a problem that needed “a lot more thought and study,” echoing Fed chair Jerome Powell’s views worrying due diligence.

Prospective Fed vice chair for guidance Michael Barr resolving the U.S. Senate Banking Committee on Thursday