Coinbase CEO Brian Armstrong met with Federal Reserve Chairman Jerome Powell and former House Speaker Paul Ryan to talk about the implications of digital currencies. The details of the meeting are unclear, but most of the discussion apparently revolved around building the digital currency of the US Federal Reserve (CBDC).
The Chinese digital yuan poses a threat to the dollar’s status as a reserve currency
Last month, the Fed chairman held a series of meetings with members of the cryptocurrency and blockchain industries.
Participants discussing the CBDC idea with Powell include Treasury Secretary Janet Yellen, members of the Bank for International Settlements (BIS), Chris Giancarlo of the Digital Dollar Project, Jens Weidmann, President of the Deutsche Bundesbank, Jamie Dimon, JPMorgan Chase and Brian Armstrong , CEO of Coinbase. Armstrong discussed the meetings he held with various US officials and central bankers in 21 separate tweets.
“I spent most of this week meeting with members of Congress and heads of various federal agencies,” Armstrong said. “The goal was to build relationships and help answer questions about cryptocurrencies. And to say what we can do to help the US gain greater regulatory clarity in this sector, as part of the newly created Cryptocurrency Innovation Council. ”He added:
“Cryptocurrency is as important as the birth of the Internet in terms of jobs, GDP growth and innovation that it can create. The United States will need to be a major player in the sector to remain relevant in the long run. ”
Brian Armstrong: “Legal uncertainty is a major problem”
Armstrong added that he thinks the progress of the Chinese digital yuan could be a threat to the US dollar. The digital yuan is entering many different areas of the Chinese economy. Subcontractors in China’s Xiong’an area are paid at CBDC and are also being tested by Hong Kong. CEO Coinbase believes the US needs to move rapidly on the digital dollar.
“Developments have moved rapidly, and I believe this poses a long-term threat to the dollar’s status as a reserve currency if the United States does not move forward quickly to create its own.”
Coinbase’s CEO noted that the United States is currently unclear about regulatory policy and standards. “Some cryptocurrencies may be securities, some commodities, some currencies / assets.”
“This means fewer startups that are able to face legal uncertainty. Some of them eventually set up their companies abroad, or not at all. That is a fundamental problem. “