EDITOR'S NOTE: If you’ve been following the crypto space, you probably know something about Ripple. It’s a company that’s developed a blockchain-based payment system and, in a separate domain, issues a private cryptocurrency called XRP. This puts Ripple in a unique position, as it can bridge the space between traditional finance and DeFi, or “decentralized finance.” The latest news is that Ripple’s advisor Michael Barr has been nominated by President Biden to serve as Vice-Chair of the Federal Reserve. The Fed’s top ranks, once consisting of economists and academics with the exception of Jay Powell, Michale Barr’s nomination (another “policy guy”) may be Biden’s attempt to bridge the wide gap between central banking and the new world order of crypto technology. Will this accelerate the creation and distribution of a US central bank digital currency (aka CBDC)? We'll have to wait and see, but Barr’s nomination, once approved, will make such a development more likely. Bear in mind, however, that this is not just about introducing a new “product” into the system. What’s likely to follow is a drastic sea change—one that can permanently alter the landscape of finance, banking, and money on a global scale, for better or worse.
US President Joe Biden is nominating Michael Barr, a former Ripple advisor, to serve as Vice Chair for Supervision of the Federal Reserve.
During the Obama Administration, Barr worked as assistant secretary for financial institutions for the Treasury Department, according to a White House press release.
In 2015, Barr joined Ripple as an advisor.
Said Barr at the time,
“I’m excited to be joining the Advisory Board of Ripple Labs. Our global payments system is badly outdated. I think innovation in payments can help make the financial system safer, reduce cost, and improve access and efficiency for consumers and businesses alike.”
Biden says in the press release that he plans to work with Senate Banking Committee Chair Sherrod Brown, a Democrat from Ohio, to move Barr’s nomination “forward quickly” towards confirmation. Brown expressed his support for Barr’s nomination in a statement.
Ripple has run afoul of the US regulators in the past few years. In late 2020, the Securities and Exchange Commission sued the San Francisco-based payments company, alleging that it sold XRP as an unregistered security.
The regulator also filed individual charges against Ripple CEO Brad Garlinghouse and the company’s co-founder, Chris Larsen.
The case is still ongoing.
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Originally published on The Daily HODL.