Fed's Barr Calls for Regulation of Stablecoins, But No Decision Yet on Digital Dollar
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Federal Reserve Vice Chair Michael Barr called for strong regulation of stablecoins like Tether and USDC. He says their proliferation needs oversight from the central bank.
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Barr urged Congress to pass legislation providing a regulatory framework for dollar-backed digital currencies. The House Financial Services Committee has advanced a bill but bipartisan support was blocked.
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Barr reiterated the Fed's position that no decision has been made yet on whether to issue a central bank digital currency (CBDC). Research is still ongoing.
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Barr said the Fed would only move forward with a CBDC if authorized by Congress and the executive branch.
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Some Republican lawmakers, like Rep. Tom Emmer, have introduced bills to block the Fed from issuing a digital dollar. Support for a CBDC is divided.