Cryptocurrency & the Evolution of a Central Bank Digital Currency [2020 National Lawyers Convention]
On November 13, 2020, The Federalist Society’s Financial Services & E-Commerce Practice Group hosted a virtual panel for the 2020 National Lawyers Convention. The panel covered “Agency Leaders on Cryptocurrency, Blockchain, and the Evolution of a Central Bank Digital Currency.”
The pandemic has accelerated the establishment of digital currencies, including central bank digital currencies (CBDC). One of the biggest draws of cryptocurrency and even the blockchain, in general, is its leaning towards decentralization. Even so, CBDCs are now in active pilot programs across the world with the Federal Reserve, the Bank of England, the Bank of Japan, the European Central Bank and the People’s Bank of China all exploring the technology.
Proponents of CBDCs argue they will bring multiple advantages for an average consumer, including fast and cheap cross-border transactions, pseudo-anonymity, personal data protection, and international operability. However, Alexander Hamilton might ask if it is tendency of CBDCs to increase public and private credit. “The former gives power to the state, for the protection of its rights and interests; and the latter facilitates and extends the operations of commerce among individuals. Industry is increased, commodities are multiplied, agriculture and manufacturers flourish: and herein consists the true wealth and prosperity of a state.”
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As always, the Federalist Society takes no position on particular legal or public policy issues; all expressions of opinion are those of the speakers.
– Brian P. Brooks, US Department of the Treasury
– Brent J. McIntosh, US Department of the Treasury
– Commissioner Hester M. Peirce, Securities and Exchange Commission
– Moderator: Paul S. Atkins, Patomak Global Partners, LLC