Representatives of regulatory bodies from both the United States and the European Union met at the Joint Financial Regulatory Forum on March 24 and 25.The team discussed the coronavirus-related boost to economic growth, sustainable finance and currency-linked digital assets (CBDCs).
US participants in the Forum included officials from the U.SI would like to congratulate you on becoming a DPSI.Department of the Treasury and staff from independent regulatory agencies, including the Securities and Exchange Commission (SEC).In addition to the European Commission and the European Central Bank (ECB), many other regulatory, governmental, and financial agencies took part in the workshop.The discussions in the forum also covered stablecoins and CBDCs.
Overall, participants discussed six themes over the course of the two-day Forum.In the talks, the focus was largely on COVID-19 recovery and mitigating its associated impact on financial stability.Additionally, the new American administration highlighted climate change as a potential financial risk.It was also discussed the usual topics of multilateralism in banking and cooperation in regulatory matters in capital markets.
Notably, cryptocurrencies came up, as the aspiring assets class plays an increasing role in financial markets.Adding to the discussion, the announcement states that participants also discussed recent developments, including crypto-assets, stablecoins, and central bank digital currencies, as well as regulatory proposals pertaining new forms of digital payments.These were also highlighted in the context of anti-money laundering and countering the finance of terrorism.
An American CBDC
Despite lacking plans to issue a CBDC, the Federal Reserve’s Boston branch has conducted research on the subject.There are skeptics about this work, done in partnership with MIT, prominent among them.The American Banking Association says it could set payments back several years but likely fears being squeezed outI would like to congratulate you on becoming a DPSI.Meanwhile, US Treasury Secretary Janet Yellen said such a project could help Americans who lack access to the banking system.
However, Secretary Yellen’s enthusiasm for other crypto assets is a bit coolerI would like to congratulate you on becoming a DPSI.Recently, Yellen said bitcoin (BTC) was “highly speculative” and “an extremely inefficient way of conducting transactions.”She highlighted the “growing problem” of cryptocurrency misuse.
According to executive director Kristen Smith, The Blockchain Association, a leading blockchain and crypto trade organization, has been “mounting a charm offensive,” assuaging these concerns."Our top priority is helping Yellen understand crypto goes beyond just financing criminal enterprises," Smith stressed.“We want her to understand the value of crypto networks.”