Fed Vice Chair Barr Updates on CBDC Research and Advocates for Stablecoin Legislation

On September 8, the Vice Chairman of the Federal Reserve Bank addressed the audience at the Philadelphia Fed’s fintech event, discussing the central bank’s involvement in financial innovation. He highlighted that the Fed’s primary role includes research and oversight, with a particular mention of the FedNow Service.

While reiterating that the Fed will only make decisions with congressional approval, Barr outlined the current emphasis on research concerning central bank digital currencies (CBDCs). He described this work as “basic research” that could either provide a foundational framework for CBDC payments or serve other functions within the current payments system.