On October 27, Michael Barr, the Fed’s vice chairman for oversight, said: speech Payments Economics Federal Reserve highlights introduction of FedNow instant payment service (reported by InfoBytes) here) is designed to enable secure, instant payments in response to the growing demand for safe and convenient payment options, and Barr encouraged banks to build new payment infrastructure. He also noted that continued experimentation with new payment technologies, such as stablecoins, creates the need for regulation, especially when assets are “pegged in government-issued currencies.”
Regarding central bank digital currencies (CBDCs), the Federal Reserve is conducting research and holding discussions with various parties. However, it has not yet decided whether to issue a CBDC. The Vice-Chairman stressed that any move in this direction would require “clear support” from the executive branch and approval from Congress.
Governor Barr highlighted the Fed’s efforts to work with the international community to improve cross-border payments systems and the need for research into both traditional and emerging payment methods, noting that innovation is a “wide-ranging “Promote access and financial inclusion.” Finally, the remarks touched on the Fed’s proposed amendments to caps on interchange fees for debit card issuers and asked for public input on the issue (reported by InfoBytes). here).
