Federal Reserve Deputy Chairman for Supervision Michael Barr explained that if non-federally regulated fixedcoins became a widespread means of payment, they could pose significant risks to financial stability, monetary policy and the payment system in the United States.

Fed Deputy Chairman for Supervision Michael Barr made evaluations about cryptocurrencies at a fintech conference organized by the Philadelphia Fed.

Barr said he was “deeply concerned” about fixedcoins without strong federal oversight.

Fed officials have previously expressed their discomfort about fixedcoins, which are cryptocurrencies indexed to assets such as the US dollar.

Stating that regulators provide guidance on crypto activities to the banks they supervise, Barr said that there are great risks when the institution does not have direct supervision and regulation authority.

Barr explained that if non-federally regulated fixedcoins became a widespread means of payment, they could pose significant risks to financial stability, monetary policy and the US payments system.