Cryptocurrency

US lawmakers question private firms’ role in development of a CBDC

U.S. lawmakers, including Tom Emmer and Patrick McHenry, I have written A joint letter to the Federal Reserve Bank of Boston regarding allegations that private companies involved in designing a “fictitious US Central Bank Digital Currency (CBDC)” have gained an unfair advantage.

The Dec. 1 letter alleges that some of the private companies involved in the project may be using partnerships to research, develop and scale CBDC products that will later be sold to commercial banks. was doing.

Lawmakers say there is not enough transparency surrounding the role of private companies involved in the project.

Lawmakers Seek Clarification on Partnerships

Lawmakers have demanded written answers to questions they believe will make the partnership clearer.

Legislators asked the Boston Fed to clarify the scope of partnerships with these private companies and whether financial institutions will fund private sector startups interested in designing CBDCs.

Additionally, they asked whether the private companies involved in the project have regulatory advantages over their competitors and what the project is doing about privacy concerns surrounding CBDCs.

MPs wrote:

“It is important that companies involved in Project Hamilton do not gain an unfair competitive advantage over their current or future competitors. You shouldn’t be in the business of choosing.”

Emer Said:

An initiative between the Boston Fed and MIT to explore the development potential of a US CBDC and the role of the private sector should be transparent. No government agency should be in the business of picking winners and losers in private industry.

A post by a US lawmaker questioning the role of private companies in the development of CBDC first appeared on CryptoSlate.

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