Brian Brooks, the acting currency auditor and former head of Coinbase’s legal department, introduced blockchain as a much more efficient platform than the current bank-based payment system that the United States has.
Decentralization for future payments.
July 29th Brooks spoke to Aaron Klein of the Brookings Institution, Answering a large group of US experts to the hypothetical platforms for a future in five years as a controller, Position currently held by Brooks in a limit state at that time as an acting controller, Brooks emphasized decentralization:
“I believe in decentralization. Ultimately, I think stablecoins and other blockchain-based dollar tokens are the toughest model for faster long-term payments. Better than the central bank’s monopoly on the payment system.”
The government’s response to the fight against the COVID-19 pandemic raised a number of longstanding problems in payment systems. Today’s conversation highlighted the unfortunate technological obstacles to transferring $ 1,200 payments to US citizens a few months ago.
The role of banks in the payment system
The Department of Currency Auditor (OCC) is the U.S. Department of Treasury, which manages federal banks. Just last week, the office hit the headlines because it gave banks nationwide authorized permission to protect crypto assets. One point that came up during today’s discussion, however, was an interesting history lesson.
As Brooks emphasized The OCC was created thanks to the National Currency Act of 1863, not the National Banking Act of 1864, how people think in general. The 1864 law changed its predecessor and shifted its focus to banking regulation, but Brooks said, “In the beginning, the idea was to create a unique system of competitive payments.”
Klein and Brooks agreed that the way money works in the United States has stagnated in the past. “A hundred years ago we had the most advanced financial system in the world, and since 1910 we have still had the most advanced system in the world,” Brooks commented.
Regarding modern system updates, the comptroller said that regulators had pushed for various solutions with limited results. “As a regulator, how do you do that?” Brooks said. “FedNow doesn’t exist yet, except on paper.” However, he emphasized Technology that already exists and is known to the cryptocurrency community as a possible solution:
“There are also blockchain technologies for the private sector in smart contracts, where you can easily plan things and press the automation button that instantly appears to everyone on that network.”
Brooks took over the role of Acting Controller at the end of May. Shortly thereafter, he spoke to Cointelegraph about his hopes of getting the regulatory and banking world used to blockchain technology.