Linda Jeng, chief regulatory officer and general counsel of the Crypto Council for Innovation, said at Forkast’s “Crypto Rising: CBDCs & Stablecoins: Asia Perspective” that the United States has read the writing on the wall and is broadening the discourse around cryptocurrencies.
Following the multi-billion dollar failure of the Terra/Luna stablecoin project, regulators around the world have increased their focus on the cryptocurrency industry, and the United States is no exception, having introduced two separate bills in recent months to establish regulation rails for the sector.
In terms of cryptocurrency regulation and innovation, however, financial regulators in the world’s biggest economy may learn from their Asian counterparts, according to Linda Jeng, chief regulatory officer and general counsel of the Crypto Council for Innovation. These remarks were given during a panel discussion at Forkast’s “Crypto Rising: CBDCs & Stablecoins: The Asia Perspective” live stream event.
A CBDC is a digital currency issued by the central bank of a nation. Jeng said that the U.S. Federal Reserve has continued to experiment with the technology even though it has not yet been granted the go-ahead by Congress to begin work on such a project.
The Federal Reserve Bank of Boston’s Project Hamilton, whose whitepaper was published earlier this year, investigates ways to boost the throughput of blockchains. Due to the fact that blockchains record all transactions in perpetuity, there are privacy and security risks associated with such endeavours.
For example, Australian Senator Andrew Bragg said this week that he will draught legislation to prohibit the use of Beijing’s CBDC, the e-CNY, by Chinese banks in Australia, citing national security concerns, including the collecting of user data. Former Federal Reserve Board of Governors member Jeng said that not all CBDCs are made equal.