Washington is as well obsessed with digital currencies, CFPB director reveal

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Protection Bureau sees crypto stablecoins as a rapid area that  authorities will need to for dangers to the rest of the financial system.

“A crypto stablecoin, riding the rails of a dominant payments system or a mobile OS, I think that could create ubiquity very quickly,” Chopra stated, that issues around crypto stablecoins, “are very much being thought through, but certainly not just by the CFPB.”

The Financial Stability Oversight Council, a collection of financial regulatory agency leaders that Chopra sits on in his capacity as CFPB director, meets tomorrow to discuss a report on regulatory gaps in digital assets. A year ago the group identified crypto stablecoins as an area in need of increased monitoring.  

Chopra, speaking at the annual Washington conference of the Electronic Transactions Association, a trade group for payments service providers, listed a roster of concerns around crypto stablecoins that has launched them onto the Washington’s radar. That included their resemblance to money market funds and their impact on financial stability if widely and rapidly adopted for payments. The CFPB director added that high-profile crypto stablecoin experiment Libra, which backed, brought the payments coins to the forefront for regulators. 

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On the other hand, overall Chopra, whose agency has recently scrutinized Buy Now, Pay Later lending and is expected to release a rule soon related to consumer control over financial data, thought government has evolved as well obsessed with cryptocurrencies.

“We’re in a moment right now where — I say this gently — Washington’s obsession with has come at the expense of really thinking about the payments ,” the CFPB director said.

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