Brian Brooks, acting as currency controller and former head of the legal department Coinbase, proposed technologies blockchain as a better payment method than the current traditional Central Bank system.
On July 29, Brooks spoke with Aaron Klein from a large American think tank called Brooklings Institution. During the conversation, he stressed the importance of decentralization.
“I believe in decentralization. Every day I am more and more convinced that stablecoiny and other dollar-based tokens are the best way to make quick payments. Better than the current monopoly of the central bank on the payment system ”.
Government actions in the face of a pandemic COVID– 19 reveal many weaknesses of the current payment system. These are technological barriers that made it difficult until a few months ago to send $ 1,200 as a stimulus package to massive numbers of American citizens.
The problem is an outdated financial system
As Brooks pointed out, OCC was established by the National Currency Act of 1863, and not, as is commonly believed, by the National Banking Act of 1864.The Act of 1864 replaced its predecessor and shifted the focus to banking regulations, but initially it was about creating a unified payment system competitive. A series of laws between 1863 and 1910 gave the United States the most advanced financial system in the world at the time. The problem is that not much has changed in this system since those years.
The authorities tried to find a solution to modernize the old payment system, but with little success. The FedNow project was created to enable real-time transactions. However, the details of the technology on which the project is to be based are not yet known. Many people, including Brian Brooks, see no point in wasting money and time creating new technology, while a ready-made solution to the problem is at hand. We are talking here about blockchain.
“There are, after all, technologies in the private sector such as blockchainwhere you can just program certain patterns and press the automatic button that will handle everyone on the network. “
Brian Brooks said.
Office of the Comptroller of the currency (OCC) is the US Treasury office that serves federal banks. A few days ago, we informed you that OCC has authorized the storage of digital assets to federal banks.