Brian Brooks, acting US cash controller and former lawyer at Coinbase, said the blockchain could transform the banking industry.
In a conversation with Forbes, Brooks explained that he considers cryptocurrencies in general and Bitcoin, Ethereum and XRP in particular from a position of potential for solving the problems of more than a thousand financial institutions under its supervision.
“The blockchain has the potential to connect all kinds of data in a decentralized network. This is an opportunity to create large decentralized networks without unnecessary obstacles. This is the great potential of blockchain and cryptocurrencies, ”he explained.
As he took office, Brooks said innovation would be the key to his program. According to him, three days to process payments between the US and Europe through the SWIFT system is too long. At the same time, the Fed’s initiatives to increase the speed and reliability of payments lose to “instant and unchangeable” blockchain transfers.
“At this time, you put your money at risk. Even after their transfer, you will be charged a conversion fee. Digital representation of value on both sides of a transaction can eliminate these difficulties and costs, ”he added.
At the same time, Brooks opposes the creation of a national digital currency in the United States: “I do not welcome state tokens. In truth, I just don’t think that this is the role of the state. But I think the Fed and the SEC need to develop a legal framework for digital currencies. ”
He also talked about some manifestations of the inefficiency of the existing system that make him believe in the need for innovation: “It will amaze you, but the requirements of the Office of the Comptroller of the Currency suggest that certain things must be faxed and banks have to have a fax number. These rules were established when faxing was a cool technology. Now they have become a burden. ”
One of Brooks' first initiatives in the Office of the Comptroller of the Currency was a call to the public to share expectations from future cryptocurrency regulation in the United States. “The agency is interested in activities related to cryptocurrencies and cryptocurrency assets, in which clients of financial services companies and banks participate, and obstacles to the further spread of cryptocurrency-related activities in the banking industry,” the statement says.
