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The Fed vice chair told the House Financial Services Committee that a CBDC offers stability, interoperability in increasingly complex economic system.

United States Federal Reserve vice chair Lael Brainard submitted a written statement in advance to the Financial Services Committee’s virtual hearing, “On the Benefits and Risks of a U.S. Central Bank Digital Currency (CBDC),” that took place Thursday. That was a sound strategic move, considering that more than 25 legislators lined up to ask questions. 

Brainard’s appearance before the committee came just after the close of the comment period for the Fed’s discussion paper, “Money and Payments: The U.S. Dollar in the Age of Digital Transformation.” However, recent events on the stablecoin market played a preemptive role in the framing of her statement.

Brainard acknowledged the position of stablecoins in the economy, saying in her written statement. She said:

“In some future circumstances, CBDC could coexist with and be complementary to stablecoins and commercial bank money by providing a safe central bank liability in the digital financial ecosystem, much like cash currently coexists with commercial bank money.”

In the Q&A, Brainard spoke in a conversation with Anthony Gonzalez of Ohio of “very robust regulation akin to bank-like regulation” to ensure the stability of stablecoins.

Two questions were touched on extensively in Brainard’s written statement and in the Q&A: the role of banks, and whether their role in the economy will be diminished even without disintermediation; plus the fragmentation of the payment system, and how a CBDC would affect the situation as it already exists.

In addition to those points, several of the participants pressed Brainard on the statement in the discussion paper that “The Federal Reserve does not intend to proceed with issuance of a CBDC without clear support from the executive branch and from Congress, ideally in the form of a specific authorizing law.” Lawmakers wanted to know what non-ideal options the Fed would consider in deciding to issue a CBDC. The question was raised even by the final participant, Jake Auchincloss of Massachusetts.

Chairwoman Maxine Waters spoke of a “digital assets space race” and the benefits Americans receive from having a currency that is accepted abroad.

Brainard suggested that limits on CBDC holdings and not offering interest on CBDC accounts could help preserve the place of credit unions in the economy and maintain the role of traditional banking.

A CBDC would help ease, but not prevent, fragmentation of the payment system through interoperability by providing a settlement currency for competing private-sector systems, which are already drawing money out of banking system, Brainard told Gonzalez. Since 2017, the share of cash in United States has declined from 31% to 20%. In addition, a CBDC would have full faith in the government behind it, Brainard told Ted Budd of North Carolina.

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  1. Hi everyone,

    Today The Reddit Collectible Avatars NFTs made a huge spike in trading volume after they sold out the other day. In this post I'll share some interesting statistics about the trading volume of The Reddit Collectible Avatars. I have mathematically rounded the trading volumes and used 2 significant figures.

    The stats of The Reddit Collectible Avatars NFTs trading on OpenSea at the time of writing:

    The total volume traded on OpenSea is 1070 ETH ($1441964.10). The total volume traded today is 202.4 ETH ($272760.31) and the day isn't even over yet. That's 19% of the total volume which is impressive! The artists made in total 26.75 ETH ($36049.10) in trading fees (2.5%). Note that this is the total trading fee and not individual trading earnings per artist. The artists made today alone 5.06 ETH ($6819.01) in trading fees (2.5%). Note that this is the total trading fee of today and not individual trading earnings per artist. Reddit made in total 26.75 ETH ($36049.10) in trading fees (2.5%). Reddit made today alone 5.06 ETH ($6819.01) in trading fees (2.5%).

    I also put all the trading volume data on OpenSea in a table:

    Collection Trading Volume 05/10/22 on OpenSea Total Trading Volume On OpenSea Aww Friends 0.40 ETH 2.0 ETH Drip Squad 0.28 ETH 7.0 ETH Meme Team 0.38 ETH 4.0 ETH The Singularity 0.14 ETH 3.0 ETH Joy Girls Club 7.0 ETH 12 ETH Bites of Brazil 6.0 ETH 10 ETH Cute Snacks 5.0 ETH 13 ETH Creatures of the Nighties 5.9 ETH 14 ETH Creatures Without Pants 3.4 ETH 10 ETH Gettin' Groovy 4.8 ETH 11 ETH Aylia 5.5 ETH 12 ETH Drag Queens of Big Gay Baby 7.6 ETH 13 ETH Protectors of the Forest 4.1 ETH 11 ETH Avatar Rock Out 5.2 ETH 16 ETH The Mind's Eye(s) 8.2 ETH 25 ETH 5 Boro Bodega 4.0 ETH 21 ETH Magic of the Woods 3.8 ETH 12 ETH Doodle Collection 4.0 ETH 11 ETH Imagination Station 7.5 ETH 46 ETH Baked Goods & Evils 8.0 ETH 68 ETH Old School Cool 4.9 ETH 16 ETH The Butterfly Garden 7.1 ETH 23 ETH Cute, Cool and Creepy 7.6 ETH 38 ETH Peculiar Gang 2.6 ETH 15 ETH Lightspeed Lads 5.0 ETH 18 ETH I quit my job to be an Artist 6.7 ETH 34 ETH Growl Gang 5.4 ETH 22 ETH Foustlings 25 ETH 178 ETH The Senses 15 ETH 180 ETH Natsukashii 7.3 ETH 57 ETH Celestial Assembly 6.5 ETH 54 ETH Wearing Your Emotions 11 ETH 77 ETH Enlightenment 7.1 ETH 37 ETH

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