The legal manager of Coinbase asks the private sector to play a leading role in the development of the US digital currency.
Brian Brooks, in an essay published in Fortune magazine on Monday, said private companies were best placed to create a highly controversial US dollar and that the government should take the time to leave it and leave it little or no regulation.
"The best way forward is one that harnesses the remarkable innovation capacity of our country and also reflects the government's historical practice of establishing broad channels for private innovation within the financial system," he said. said Brooks. "… But it is no more necessary for the government to control the policy of blocking stable issuers that the government dictates technology used by commercial and private investment banks."
Brooks is essentially considering an informal public-private partnership in which private companies will leave monetary control to the federal government, which will separate from the management of the technology infrastructure:
"In short: the private sector should build technology, and the public sector should define monetary policy."
Its approach differs from the Facebook-led Libra project, which the social media giant had announced for the first time this summer.
US regulators and regulators have both disapproved of the company's plan to create a stable global currency governed by a Swiss-based board, dubbed the Libra Association, claiming that cryptocurrency would be beyond the competence of the regulators. In addition, project projects to support the stable currency with a basket of world currencies could eventually strip the US Federal Reserve for Monetary Control.
In October, Federal Reserve Governor Lael Brainard said global digital currency projects such as Libra could destabilize the world's central banks.
Brooks opposed the Libra approach to USC (the stablecoin published by Coinbase and Circle) and other similar tokens, claiming that digital currencies backed by a dollar pose no threat to central bank control. If the Fed-controlled dollar supports the private sector, he said the Fed still controls the monetary policy behind the stablecoin.
According to Brooks, the best course of action for the government would be to take no action, if any. In addition to ensuring that various stable fund projects, such as Libra and Coinbase's USDC, hold the fictitious reserves they claim, he called for a passive approach to private innovation.
Brooks did not immediately respond to requests for additional comments.
Dollar image via Shutterstock