House Financial Services Chair Patrick McHenry challenged a CFPB proposed rule to expand its regulatory authority into the market for digital consumer payments.
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The CFPB proposed defining a market for general-use digital consumer payment applications that would cover digital applications that allow consumers to make payments.
Federal Reserve Board Vice Chair for Supervision Michael S. Barr reviewed developments in payment system innovation and emphasized the importance of "carefully weigh[ing]" the benefits and risks of the new technologies as to stablecoins and central bank digital currencies.
Federal Reserve Board Governor Michelle W. Bowman questioned whether the potential benefits of a U.S. central bank digital currency are worth the significant risks and tradeoffs for the financial system.
The House Financial Services Committee heard testimony from witnesses regarding the implications of the issuance of a Central Bank Digital Currency on the U.S. financial system.