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5/26, 6:33 PM (Source: TeleTrader)
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Brainard: CBDC, stablecoins could co-exist

Federal Reserve Vice Chair Lael Brainard said on Thursday to the House Committee of Financial Services that the Central Bank Digital Currency (CBDC) could "coexist with and be complementary to stablecoins and commercial bank money by providing a safe central bank liability in the digital financial ecosystem."

Brainard added that the Federal Reserve needs to put in place "clear regulatory guardrails to provide consumer and investor protection." She asserted that the Fed officials recognize that "there are risks of not acting, just as there are risks of acting" when it comes to the digital currency issues.

Nevertheless, Brainard stated that the Federal Reserve "will not move ahead on the digital currency without the support of Congress."

Baha Breaking News (BBN) / AY