Top Banking Regulator Nominee Concerned About Tech Giants Controlling Crypto, Undermining Economy: Report

Saule Omarova, President Joe Biden’s nominee for Comptroller of the Currency, is troubled by the prospect of the US dollar being circumvented and replaced by private digital currencies.

While giving testimony before the Senate Banking Committee, the Cornell Law School professor says she is particularly concerned that big tech companies might utilize cryptocurrencies to consolidate even more power.


“My concern is… we may end up in a situation where a large company, like a big tech company, might control all of the infrastructures through which the money that every American and every American business uses in their daily [lives].”

Omarova adds that national sovereignty and the status of the US dollar could be put at risk by multinational companies issuing a competing currency.

“My concern is that in the system where a lot of private actors like Facebook can issue their own version of currency, that can potentially outpace and even displace the US dollar.”

The professor says she prefers for the US dollar to remain the world’s dominant currency.

“I believe that we do have government-issued money right now in this country, and it’s working great, and I worry about allowing private innovation to undermine a lot of important public policies that we need to pursue.”

When asked by Wyoming Republican Senator and cryptocurrency proponent Cynthia Lummis which specific policies that she intends to pursue, the nominee cited national security, to which Lummis replied, “Do you think Bitcoin [BTC] threatens national security?”

Omarova responded,

“I am not an expert on Bitcoin, but I would worry if all of our financial transactions were [reliant upon] some blockchain system where various actors who might actually be located in other countries, not particularly friendly to us, control the functioning of that system. That would be my worry.”

The professor is open to the idea of a central bank digital currency (CBDC), however.

“Central bank digital currency, like any digital currency, would make a couple of things easier to achieve in the financial system than they are today.

One is the efficiency of moving money around… [That] is an incredible risk-reducing tool in the financial system…

The one potential advantage of a CBDC over private stablecoins is that it will be issued subject to statutory mandate, legal decisions made by democratically elected lawmakers.

That would allow the central bank, under the oversight of Congress… to ensure that everybody has fair access to the new form of money.”

[embedded content]


Check Price Action

Don’t Miss a Beat – Subscribe to get crypto email alerts delivered directly to your inbox

Follow us on Twitter, Facebook and Telegram

Surf The Daily Hodl Mix



Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any loses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.

Featured Image: Shutterstock/iurii/Vladimir Sazonov


Tagged : / / / / / / / / /

BNY Mellon Speculated to Enlist Fireblocks Platform for BTC Custody Services

Corporate banking company BNY Mellon revealed it is working with a different entity for its digital asset custody services, although it did not specify any group.

Fireblocks Rumor

However, according to Coindesk, the investment giants are working with Fireblocks in holding cryptos in their client’s capacity. BNY and Fireblocks have both dodged the query on whether the claims are valid.

BNY Mellon’s Digital Market Involvement

This month, the New York-based bank made public its plan to offer digital asset custody services to the public. The move came about after Elon Musk’s company, Tesla, invested in about $1.5 billion worth of BTC. Wall Street players are slowly dipping themselves in the bitcoin prospect, as Tesla’s activities have sparked an urgency for institutional investment in cryptocurrency.

The head executive at the bank, Mike Demissie, recently shed light on why BNY Mellon is venturing into crypto services. He said that the call for crypto custody services from its customers is becoming too big to turn a blind eye. He added, “We are also seeing new demand from prospective clients, particularly digital-native companies in the digital asset space, who are looking for BNY Mellon’s core investment services.”

BNY Mellon manages approximately $40T in assets. However, the bank’s digital market prowess was not a factor in play. Following the custody services announcement, BNY Mellon said it is working with an unidentified custody platform. Nonetheless, one anonymous source claims that Fireblocks has been working with the banking company ‘for a long time.’

The Road to Crypto-Banking

BNY Mellon Bank’s long-term partnership with crypto startup platform Bakkt proves that the investment institution was on its way to offering crypto custody services long ahead. According to Executive Mike Demissie, there could be enough regulatory incentives for banking companies to store cryptocurrency for their clients.

In January, the U.S. OCC gave banks the green light to include holding stablecoin services to their offerings. The allowance has made some banking giants like JP Morgan assess their capabilities in providing crypto services. 

Fidelity Investments, one of the first traditional financial entities to employ crypto custody services, went even a step further by allowing clients to take loans with BTC as collateral.

Seemingly, big institutions are moving in to take their space in the crypto-verse to boost their offerings and expand their client base.

Since financial regulators are still hesitant to allow banks to adopt the full decentralization properties for using cryptocurrency, they resort to custody platforms such as Fireblocks.

Nevertheless, whether digital asset custody service platforms are secure is somewhat of a delicate matter for banks worldwide.

Like BTCMANAGER? Send us a tip!

Our Bitcoin Address: 3AbQrAyRsdM5NX5BQh8qWYePEpGjCYLCy4


Tagged : / / / / / / / / /
Bitcoin (BTC) $ 27,030.24 0.55%
Ethereum (ETH) $ 1,681.37 0.80%
Litecoin (LTC) $ 66.42 0.55%
Bitcoin Cash (BCH) $ 236.54 2.17%