Federal Reserve Endorses Ethereum-Backed Alternative To Libor

Federal Reserve Board Chairman Jerome H. Powell provided a statement on May 28, 2020, regarding the suitability of AMERIBOR as a replacement to LIBOR. AMERIBOR uses a permissioned version of Ethereum blockchain to capture the interbank lending rates.

The written statement dated May 28, 2020 was in response to a “question for the record” from Senator Tom Cotton (R-AR) following Chairman Powell’s testimony to the U.S. Senate’s Committee on Banking, Housing, and Urban Affairs held on February 12, 2020. Senator Cotton asked if the Fed supports alternative benchmark interest rates besides the Secured Overnight Financing Rate (SOFR) – such as AMERIBOR - for the replacement of LIBOR.