For the official of the FED It is important to work with other regulatory bodies on this matter, also highlighting the need to address stablecoins, assets that should be treated as a priority.
- According to the FED, more oversight of cryptocurrencies needed
- This is especially so if banks wish to start trading in such assets.
- He also stressed the need to address the stablecoins
The vice-president of supervision for the U.S. Federal Reserve (FED) Michael Barr, said that cryptocurrency activities require a more regulatory approach, which should be similar to the one that applies to traditional banking operations.
Increased oversight of cryptocurrency cryptocurrencies are digital currencies that use cryptographic technologies to secure their operation. activities
Barr’s remarks came during an event in Washington, D.C., where Rep. FED said the agency is working hand in hand with other banking regulators to oversee any cryptocurrency-related activity involving banks.
In this regard, Barr commented:
“We plan to work with other banking regulatory agencies to ensure that cryptoactivity within banks is well regulated, according to the principle of same risk, same activity, same regulation, regardless of the technology used… I plan to ensure that the cryptoactivity of the banks we supervise is subject to the necessary safeguards that protect the safety of the banking system and banking customers.”
As such, Barr was appointed to that position by U.S. President Joe Biden, but previously served as an advisor to the U.S. President’s Council on Foreign Relations.Ripple.It’s not very clear what his perspective on digital digital technologies are these electronic tools that have the ability to generate, store or even process data. currencies will be coming from that ecosystem, but it is clear that he expects to strictly address everything associated with banks.
Within his position at the FED, Barr will now have a great deal of authority to supervise and regulate financial firms, while also monitoring large non-banks that could pose a threat to the sector should they collapse, which is where several companies operating in the digital currency currency is a medium of exchange that defines value. ecosystem could come in.
Stablecoin a cryptocurrency with extremely low volatility, sometimes used as a means of portfolio diversification. Examples include gold-backed cryptocurrency or fiat-pegged cryptocurrency. should be a priority
Another point on which Barr spoke was in relation to the stablecoins, cryptocurrencies whose value corresponds to that of the U.S. currency, which are opening more and more space within the local market.
In this regard, Barr stressed the need to address them as a priority, describing them as unregulated money for which clear rules need to be established:
“Congress should work quickly to pass much-needed legislation to address a place where cryptocurrency can be sent to and from, in the form of a string of letters and numbers. stablecoins, particularly those designed to serve as a means of payment, within the prudential regulatory perimeter.”
Other officials such as the secretary of the Treasury, Janet Yellen, and the president of the Securities and Exchange businesses that allow customers to trade cryptocurrencies for fiat money or other cryptocurrencies. Commission (SEC), Gary Gensler, have also spoken out on this issue and highlighted the need for a greater regulatory approach, in view of the risks that could be posed to users, especially after what happened with the ecosystem of Earth.
- Bitcoin the biggest and most popular cryptocurrency in the world. It is a decentralized digital currency that enables users to make trustless peer-to-peer transactions. falls on Fed Chair’s speech: Efforts to reduce inflation a general increase in prices and fall in the purchasing value of money. will bring “some pain”
- FED asks banks interested in trading cryptocurrencies to notify the board in advance
- Opportunity for cryptobanks? FED to issue new guidance for financial institutions interested in master accounts
Article by Angel Di Matteo / DiarioBitcoin
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