Brian Armstrong meets with Fed Chairman Jerome Powell

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According to Jerome Powell’s conference schedule, Coinbase CEO Brian Armstrong met with Federal Reserve Chairman and former House Speaker Paul Ryan to discuss the implications of digital currencies. The details of the meeting are unclear, but most of the talk has apparently revolved around building a digital currency from the US central bank (CBDC) and countries that are already ahead of the game.

Coinbase CEO: “Chinese digital yuan poses threat to US reserve currency status”

The Federal Reserve wants to build a digital dollar and the steps to make it happen are happening more frequently. Almost every Fed member has something to say about a U.S. CBDC and in May the Fed chairman held a number of meetings with members of the cryptocurrency and blockchain industry.

Attendees who discussed the CBDC idea with Powell include people like Treasury Secretary Janet Yellen, members of the Bank for International Settlements (BIS), Chris Giancarlo of the Digital Dollar Project, Jens Weidmann the chairman of the Deutsche Bundesbank, Jamie Dimon the CEO of JPMorgan Chase, and Brian Armstrong, CEO of Coinbase. Armstrong discussed the meetings he had with various U.S. bureaucrats and central bankers in 21 separate tweets.

“I spent most of this week in DC meeting with members of Congress and heads of various federal agencies,” Armstrong said at the time. “[The] the goal was to build relationships and help answer crypto questions. And to see what we can do to help the United States achieve more regulatory clarity in this space, under the new [Crypto Council for Innovation]. Armstrong continued:

Crypto is as important as the birth of the Internet in terms of jobs, GDP growth, and the innovation it can create. The United States will need to be a major player in crypto to remain relevant in the long term.

Armstrong Says “Legal Uncertainty” is “Major Issue”

Armstrong further said he believed advances in China’s digital yuan could pose a threat to the US dollar. The digital yuan has entered many different areas within the Chinese economy, with the People’s Bank of China (PBOC) running a number of red envelope lotteries. Subcontractors are paid in the CBDC in China’s New Xiong’an Zone, and Hong Kong also connects to the digital yuan. The CEO of Coinbase believes the United States needs to move quickly on the digital dollar.

“I also relayed my thoughts on China and its central bank digital currency,” Armstrong explained of his meeting with members of Congress and heads of various federal agencies. Armstrong added:

It’s real, they’re moving fast, and I think it poses a long-term threat to the US reserve currency status if the US doesn’t act quickly to create its own.

The Coinbase CEO pointed out that the bureaucrats and agency heads he met were all “thoughtful and committed individuals.” He further noted that the United States currently does not have much clarity on policy and regulatory standards. “Some cryptos can be securities (SEC), some commodities (CFTC), some currencies / properties (Treasury / IRS) and some none of the above,” Armstrong said.

“So it’s a bit of a jump between the two existing federal regulators,” Armstrong concluded. “This means fewer startups able to brave legal uncertainty. Some end up starting their business abroad, or not at all. This is a major problem. “

What do you think of Brian Armstrong’s meeting with Jerome Powell, American bureaucrats and heads of federal agencies? Let us know what you think of this topic in the comments section below.

Tags in this story Brian Armstrong, CBDC, Central Bank, central bank digital currency, China, chris giancarlo, CEO of Coinbase, Congress, crypto industry, Digital dollar, Digital yuan, jerome powell, politicians, Regulations, Standards, United States, American Economy

Image credits: Shutterstock, Pixabay, Wiki Commons, Brian Armstrong via Twitter,

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