Digital dollar makes progress while regulators weigh financial stability risks
Friday 18 February 2022 – Vol.13 Ed.7.5
Commentary: Boston Fed refines Project Hamilton focus
By Lewis McLellan in London
‘If we don’t start researching the technology now, we’ll risk falling years behind,’ said Jim Cunha, executive vice-president of secure payments and fintech at the Federal Reserve Bank of Boston, discussing central bank digital currency at an OMFIF event on 17 February. But despite this urgency, he added that the dollar’s status as the world’s reserve currency meant that it was more important for the US to be right than to be first.
Read the full commentary on the website.
Commentary: Non-bank financial institutions pose significant systemic risk
By Taylor Pearce in London
Despite being hit by the largest exogenous shock in its history, the global financial system appears to have weathered the Covid-19 storm. The regulatory framework introduced after the 2008 financial crisis has passed its first major test. Yet, despite banks’ resilience, non-bank financial institutions were not subject to the same post-crisis regulatory overhaul. As a result, the most acute threats to financial stability stem from the less regulated NBFIs.
Read the full commentary on the website.
