From: EconoTimes
In a recent speech, Randal K. Quarles, Vice Chairman for Bank Supervision on the Federal Reserve Board of Governors, highlighted the complications associated with digital currencies, particularly as to how to treat and define them.
Quarles noted that the underlying blockchain technology could offer new ways to store, transfer, and protect data and traditional financial assets, and also underscored the efforts of the financial industry in this space. However, with regard to digital currencies, Quarles said:
“…the “currency” or asset at the center of some of these systems is not backed by other secure assets, has no intrinsic value, is not the liability of a regulated banking institution, and in leading cases, is not the liability of any institution at all. Indeed, how to treat and define this new asset is complicated.”
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