Lawmakers Debate Government Sanctioned Digital Currency – By Alexandra Kelley (Nextgov) / May 27, 2022
Fed Board of Governors Vice Chair Lael Brainard said stablecoins could work with CBDCs, but focus will shift to research and cybersecurity protections.
The House Financial Services Committee discussed the future of the federal banking system in relation to cryptocurrencies on Wednesday, specifically regarding the future of stablecoins as viable currency and how a U.S. central bank digital currency could be developed.
Lael Brainard, the vice chair of the Board of Governors of the Federal Reserve System, testified on the pros and cons of a government sanctioned digital currency, as well as the regulatory requirements a currency-pinned stablecoin would require.
“In some future circumstances, CBDC [central bank digital currency] could coexist with and be complementary to stablecoins and commercial bank money by providing a safe central bank liability in the digital financial ecosystem, much like cash currently coexists with commercial bank money,” Brainard wrote in her opening statement.
