{"id":368664,"date":"2021-11-18T01:00:00","date_gmt":"2021-11-17T22:00:00","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/u-s-is-not-moving-fast-enough-to-develop-a-cbdc-says-former-cftc-chair\/"},"modified":"2021-11-18T01:00:00","modified_gmt":"2021-11-17T22:00:00","slug":"u-s-is-not-moving-fast-enough-to-develop-a-cbdc-says-former-cftc-chair","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/u-s-is-not-moving-fast-enough-to-develop-a-cbdc-says-former-cftc-chair\/","title":{"rendered":"# U.S. is not moving fast enough to develop a CBDC, says former CFTC chair"},"content":{"rendered":"

“# U.S. is not moving fast enough to develop a CBDC, says former CFTC chair <\/strong>”<\/p>\n

Tim Massad, who served as chair of the Commodity Futures Trading Commission until 2017, said the United States is too slow in developing a plan to modernize its payment systems.<\/p>\n

In a Wednesday hearing of the Joint Economic Committee on the role of digital assets in government, Massad said<\/a> a central bank digital currency, or CBDC, could be one solution for the United States to improve its existing payments systems, which he referred to as \u201cslow\u201d and \u201cexpensive.\u201d In addition, the former CFTC chair said while stablecoins could be used for this purpose, they also presented some of the most urgent challenges for U.S. regulators and pose significant risks.<\/p>\n

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Massad said that people using stablecoins like Tether (USDT) to move funds between exchanges was a good example of why the U.S. payment system needs to be modernized. However, he added the stablecoin issuer\u2019s reserves were likely not invested in \u201chighly safe liquid assets\u201d like the dollar and thus not insured in the same way as funds in traditional financial institutions. The former CFTC head said his recommendation would be to adopt \u201cbank-like\u201d regulations but also prevent issuers from making loans to eliminate the need for deposit insurance.<\/p>\n

\u201cCBDCs, stablecoins and digital assets general<\/a>ly are often cited as a means to achieve greater financial inclusion, and we should consider their potential for doing so,\u201d said Massad. \u201cWe should act now to improve access to financial services through other means as well \u2014 the need is too great.\u201d <\/p>\n

Related: <\/em><\/strong>Former CFTC chair explains why regulators should app<\/a>rove a Bitcoin ETF<\/em><\/strong><\/p>\n

Coin Center director of research Peter Van Valkenburgh, also in attendance at the hearing, called stablecoins an \u201cinteresting area\u201d in the crypto space but voiced concerns about the seeming lack of regulatory clarity for issuers. <\/p>\n

\u201cThere are certainly some stablecoin issuers who are violating the law,\u201d said Van Valkenburgh, adding:\u00a0<\/p>\n

\u201cThere are also regulated stablecoin issuers and there is also the possibility of creating more of a federal home for regulation of stablecoins. We don\u2019t have a legal gap there, I think \u2014 we just have an enforcement gap.\u201d<\/p><\/blockquote>\n

The comments from both Van Valkenburgh and Massad come following a report from the President\u2019s Working Group on Financial Markets suggesting that stablecoin issuers in the U.S. should be subject to \u201cappropriate federal oversight\u201d akin to that of banks. The group said legislation is \u201curgently needed to comprehensively address the prudential risks posed by payment stablecoin arrangements.\u201d<\/p>\n