He added that it’s crucial to note that research isn’t decision-making, and that Fed is far from deciding on CBDC issuance, which would require support from the executive branch and Congress.
Barr also highlighted that the Fed has implemented a supervision program for overseeing technology-related activities at banks, encompassing crypto-assets and stablecoins. In the case of stablecoins, it has issued guidance to Fed-supervised banks to ensure proper risk management and compliance.
However, he commented Fed is concerned about stablecoins without strong federal oversight because they could pose risks to financial stability, monetary policy, and the payments system.
Political Debate for the Upcoming Elections
Cryptocurrency has also become a contentious issue on Capitol Hill. In Congress, seven crypto-related measures are being debated.
Recently, Florida Governor Ron DeSantis called CBDCs: a threat to “personal economic freedom and security” that is tantamount to “government sanctioned surveillance.”
Together with Sen. Mike Lee, DeSantis has have firmly opposed a CBDC in order to uphold constitutional rights. Meanwhile, a bill to outlaw all CBDC pilot programs has been submitted by Representative Alex Mooney.
However, Congress is also discussing a distinct Republican CBDC proposal. Strangely, this one allows for a CBDC as long as a government-selected organization, such as Ripple or a Wall Street bank, manages it.
Contractors Do No Repairs
Due to the Bank Secrecy Act, a CBDC using a contractor must collect personal information and share it with authorities. The federal government would retain the power to monitor, restrict, and oversee spending.
DeSantis is a vocal opponent of the American digital currency. He signed a Florida law outlawing the use of federal CBDCs as currency in may. Additionally, he forbade the use of foreign CBDCs, arguing that doing so would result in a “massive transfer of power from consumers to a central authority.”
And even though the U.S. Federal Reserve reportedly does not have any immediate intentions to introduce a digital dollar, this could change during the election of 2024, since more politicians are bringing up cryptocurrencies in their early debates.
Robert F. Kennedy, the Democrat running for president is a fervent proponent of cryptocurrencies, particularly Bitcoin, as an acceptable form of payment and investment in the US.
The fact that RFK apparently invested more than $250,000 in Bitcoin shows that he personally supports the crypto token movement and is not just using it as a campaign strategy.
