Lael Brainard, vice-chair of the United States Federal Reserve submitted a written statement to be included in the Financial Services Committee’s virtual hearing “On the Risks and Benefits of a U.S. Central Bank Digital Currency” (CBDC) that was held Thursday. This was an excellent strategic decision, given that over 25 lawmakers lined up to pose questions.

Brainard’s appearance before the committee came just after the close of the comment period for the Fed’s discussion paper, “Money and Payments: The U.S. Dollar in the Age of Digital Transformation.” However, recent events on the stablecoin market played a preemptive role in the framing of her statement.