Former Ripple adviser Michael Barr said on Thursday that the adoption of cryptocurrency technology offered both both opportunities and risks.
Barr was nominated by President Joe Biden to be a part of the Federal Reserve’s monitoring of cryptocurrencies.
Addressing stablecoins, which have been the most talked about digital currencies of late, following the crash of TerraUSD, he said: “In issues such as stablecoins there could be financial stability risks, and I think it’s quite important that Congress and regulatory agencies wrap their arms around those financial stability risks and regulate.”
Barr is not part of the Federal Reserve’s department that will be focusing on cryptocurrencies, but he stands a good chance, especially after his sobering testimony about stablecoins.
His participation in Ripple, a project that is now involved in a legal battle with the US Securities and Exchange Commission was not brought up during his hearing.
Should Barr be confirmed, he will have an important part to play in the future of regulating the industry.
He will take part in drafting any new regulatory framework that would bind stablecoins so that they are more predictable. In the meantime, Barr is likely to be involved with the creation and implementation of a digital US dollar.
A digital clone of the fiat US dollar has been much talked about, but no feasibility study has been put into practice.
Some, including Barr, have explained that creating a US dollar should come with more than just transporting the value of the paper online. Such innovation could be challenging.
If you want to use cryptocurrency recreationally, though, we recommend sticking with Bitcasino, 1xBit or FortuneJack.