• Joe Biden is reportedly appointing Lael Brainard, Vice Chair of the Federal Reserve, as his top economic adviser.
• Brainard is a critic of cryptocurrencies and an advocate for a digital dollar that would be highly centralized and monitored by authorities.
• She has expressed concerns about Decentralized Finance (DeFi), saying it could facilitate illicit activities.
Joe Biden’s Top Economic Adviser
President Joe Biden will soon name Lael Brainard, Vice Chair of the Federal Reserve, as his top economic adviser. Previously working at the White House under President Bill Clinton, Brainard was also nominated as a Fed Governor in 2014 by Barack Obama.
Critic of Crypto and Advocate for Digital Dollar
Brainard is known as an opponent of cryptocurrencies, opining that bank involvement in the asset class could cause monetary chaos. Additionally, she is a proponent for a digital dollar that would be highly centralized and monitored by authorities.
Concerns About DeFi
Brainard has also expressed concerns about Decentralized Finance (DeFi), saying the new technology could be a catalyst for possible illicit activities: „The permissionless exchange of assets and tools that obscure the source of funds not only facilitate evasion, but also increase the risk of theft, hacks, and ransom attacks.“
Impact on Crypto?
It remains to be seen how Brainard’s appointment will affect crypto markets going forward – it could either support or hinder innovation within this space depending on her attitude towards it. So far her stance appears to be relatively conservative but we’ll have to wait and see if this changes over time or with further influence from other entities within Biden’s administration.
While Lael Brainard may not have been many people’s first choice for Joe Biden’s top economic advisor due to her anti-crypto views, it is important to remain optimistic until we can gauge how she might shape policy decisions related to this space in her new role. Only time will tell what impact her appointment may have on cryptocurrency markets going forward!