The Federal Reserve Board is actively researching a central bank digital currency (CBDC) and related technologies, according to Vice Chair Michael Barr. The focus of their research is on the system architecture, including ledgers, tokenization, and custody models for an intermediated CBDC. Barr emphasized that a digital dollar would require a congressional mandate, but learning from domestic and international experimentation can help inform responsible innovation. While Barr’s remarks may not be controversial, they do bring to mind Representative Tom Emmer’s call to end the Fed’s CBDC research. Meanwhile, Sir Jon Cunliffe, the deputy governor of the Bank of England (BOE), spoke at the Economics of Payments XII Conference and highlighted that no decision has been made regarding a CBDC in the UK. However, a consultation paper published in February concluded that a Digital Pound would likely be needed by the end of the decade due to advancements in payments technology. The paper received 50,000 responses, with privacy, programmability, and the decline of cash being the top concerns among commenters. Cunliffe also mentioned criticisms of the Digital Pound, ranging from concerns about disintermediating the banking system to claims that it would be a solution looking for a problem. He envisioned private companies integrating and programming the Digital Pound into their services for wallet holders. The BOE plans to issue a discussion paper on stablecoin regulation in the coming months.Both Barr and Cunliffe emphasized the need for regulation in the stablecoin market. Barr noted that stablecoins borrow the trust of the central bank, highlighting the importance of oversight. Cunliffe promised that the BOE would address stablecoin regulation soon.
This News Article was automatically generated by Bob the Bot (AI)
This News Article was automatically generated by Bob the Bot (AI)
| Information | Details |
|---|---|
| Geography | Europe |
| Countries | 🇺🇸 |
| Sentiment | neutral |
| Relevance Score | 1 |
| People | Michael Barr, Tom Emmer, Jon Cunliffe |
| Companies | Federal Reserve Board, Bank of England (BOE) |
| Currencies | British Pound, US Dollar, Digital Rand |
| Securities | None |
