- The Fed thinks that crypto assets can transform the financial system but they still need adequate protection barriers.
- The central bank is assembling a team of cryptocurrency experts to ensure they are up to date on developments and innovations in the sector.
- The team’s goal is to balance innovation and security measures that can benefit consumers and the financial system.
The Federal Reserve’s top regulator claims that while crypto assets can transform the financial system, the technology still requires adequate safeguards.
In his speech, Thursday at the Peterson Institute for International Economics, Federal Reserve Vice Chairman Michael Barr said the central bank is tightening oversight of cryptocurrency-related activities as recent events in the sector caused losses. billions of dollars worth of investments to millions of people.
“Due to the lack of regulatory compliance, customers do not have the information they need to assess and mitigate their risks. Investors do not have the structural protections they have relied on for many decades. As a result, many have fallen victim to cases of fraud and abuse, some appropriately classified as “Ponzi schemes” under a high-tech guise.”
barrel
As security protocols for the cryptocurrency market are being put in place, Barr said the central bank is assembling a team of cryptocurrency experts to make sure they stay up to date on new developments and innovations in the sector.
“In addition to sharing what we learn with the public on an ongoing basis, we are also improving our oversight of these activities. We are building a specialized team of experts who can help us learn from new developments and make sure we stay up to date with innovation in this sector.”
barrel
Barr also added that the goal is to balance innovation and security measures that can benefit both consumers and the financial system.
“As we continue our efforts, we will work to support innovation by establishing the essential security measures to have sustainable, secure and transparent markets” Barr.
