The Fed’s New Crypto Team
NFX Partner Morgan Beller joins Ed Ludlow and Caroline Hyde to discuss the Federal Reserve’s new crypto-focused team to help ensure that the central bank can stay on top of developments in the asset class.
The Federal Reserve is forming a new team dedicated to researching cryptocurrencies, according to Vice Chair Michael Barr. In an interview, Barr said that the Fed needs to be prepared for the rise of digital assets and that they are currently exploring the potential risks and benefits of stablecoins. He also acknowledged the importance of dollarization and the potential of stablecoins to further push the US dollar as a digital asset.
However, some are concerned about the regulatory environment for stablecoins. Morgan Beller, co-founder of the Diem Association, expressed her hope that the US government would recognize the value of stablecoins and push for safe, safe, safe, stablecoins that are backed by physical US dollars in a bank account.
“Stable coins are a tool for furthering dollarization,” says Morgan Beller of the Fed’s new crypto team, amidst regulatory concerns and industry disruptions.
Beller also acknowledged the risks of misleading consumers with assets labeled as USD but not backed by physical dollars.
The interview also touched on the recent news of Silicon Valley Bank’s stock dropping, with Beller stating that they had been a great partner to many in the tech industry. Overall, the interview highlights the growing importance of cryptocurrencies and stablecoins in the financial world, with regulators and industry players alike exploring the potential risks and benefits.
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