A Fed paper talks about XRP – in passing.
The Federal Reserve Bank of Atlanta has piqued the interest of the crypto community with a recent publication in its Policy Hub series on the implications of Web3 for financial services. The 17-page paper by Christine Parlour, a professor at the University of California, Berkeley Haas School of Business, is intended as a basic text, and is noteworthy for its completeness.
Parlour mentions the regulatory challenges of decentralized autonomous organizations , which do not have “an obvious legal entity” to engage with. Furthermore: “The darker side of using tokens as collateral is that it generates interconnectedness among various protocols, which makes estimating or understanding systemic risk more challenging for regulators.”Web3 financial infrastructure provides advantages over traditional finance in the cost and speed of transacting, Parlour says. Trade finance can be significantly improved through cost reductions along the supply chain, for example.
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