President Joe Biden has selected his top economic adviser by naming digital dollar advocate and Federal Reserve Vice Chair Lael Brainard for the role.
The official announcement is expected on Feb. 14, according to a Bloomberg report. The move is significant for the crypto industry because Brainard is a proponent of a U.S. digital dollar central bank digital currency (CBDC).
Furthermore, Brainard will replace outgoing NEC Director Brian Deese. The move will place her alongside the not-so-crypto-friendly former Fed official, Treasury Secretary Janet Yellen.
Lael Brainard took office as the Vice Chair of the Board of Governors of the Federal Reserve on May 23, 2022.
The Biden Administration is battling with inflation in the run-up to his reelection campaign. Brainard will play a pivotal role in economic policy and implementing legislation such as the Inflation Reduction Act.
U.S. inflation is currently 6.5% though January’s figures are scheduled for release later today. It has been predicted to fall to 6.2%.
Digital Dollar Back on The Table?
Lael Brainard testified before a House committee in May 2022 on the benefits and risks of a CBDC. At the time, she said that there was a “need for clear regulatory guardrails,” but a digital dollar could co-exist with stablecoins.
She commented that a CBDC could provide “a safe central bank liability in the digital financial ecosystem, much like cash currently coexists with commercial bank money.”
In July, she referred to the Terra/Luna collapse stating, “recent volatility has exposed serious vulnerabilities in the crypto financial system.”
However, that was before the catastrophic FTX meltdown in November of the same year.
Like most forward-looking U.S. policymakers, Brainard sees a clear and urgent need for a regulatory framework for digital assets.
She may be pivotal in accelerating the rollout of regulations as Uncle Sam has dragged its feet so far.
In January, anti-crypto Senator Elizabeth Warren commented, “Lael Brainard is a very thoughtful economist. But what matters most is the president’s vision and momentum.”
Even with the appointment of a pro-digital finance economic advisor, it is unlikely that the digital divide between U.S. lawmakers will be closed soon.
Crypto Market Outlook
Crypto markets have continued their retreat today, dropping a further 1.3% over the past 24 hours. As a result, total market capitalization has fallen to $1.04 trillion.
The slow erosion of gains made in the January rally has continued as the bears regain control of markets.
Bitcoin (BTC) is in danger of losing $21,500, while Ethereum (ETH) looks ready to drop below $1,500 again.
BeInCrypto has reached out to company or individual involved in the story to get an official statement about the recent developments, but it has yet to hear back.