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MNI BRIEF: Fed’s Brainard Wants To Explore Benefits Of CBDC

(MNI) Washington

The Federal Reserve should explore a possible role for central bank digital currencies in the financial system, while at the same time ensuring that new forms of finance like stablecoins and cryptocurrencies do not pose threats to the banking system.

“It is prudent to explore whether there is a role for a CBDC to preserve some of the safe and effective elements of the financial system of the present in a way that is complementary to the private sector innovations transforming the financial landscape of the future,” Brainard said.

Referring to some expectations about the expanding use of stablecoins, Brainard said “it is important to have strong frameworks for the quality and sufficiency of reserves and risk management and governance.”

MNI Washington Bureau | +1 202 371 2121 | pedro.dacosta@marketnews.com
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MNI Washington Bureau | +1 202 371 2121 | pedro.dacosta@marketnews.com
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