A member of the Board of Directors of the US Federal Reserve calls for laws with which banks and institutions can issue digital digital assets.
In a speech by Christopher J. Waller at a recent conference in San Francisco, the FED governor argues for a regulatory framework that would enable the financial institutions of Blue-Chip to issue regulated Stablecoins.
According to Waller, Stablecoins can be extremely beneficial for the financial system because they have countless usage scenarios, such as broadening access to US dollars, easy cross -border payments and retail payments.
“The first theme that I will explore is one that I have discussed in the past – the safety and reliability of Stablecoins and the need for a clear regime for stablecoins in the United States …
This framework must enable both non-banks and banks to release regulated stablecoins and must take into account the effects of regulations on the payment landscape, including competitive payment instruments. “
Waller says, however, that potential risks are associated with stablecoins, including the possibility that they can be shared from the Fiat currency to which they are linked.
“Stablecoins are forms of private money and, like any form of private money, are subject to risks, and we have seen ‘de-pegs’ of some stablecoins in recent years. In addition, all payment systems are confronted with the risk of failure and stablecoins are also subject to clearing, settlement and risks of other payment systems. ”
Earlier this month, the Republican Senator Bill Hagerty of Tennessee De Genius Act proposed, a bill to regulate and define Stablecoins, as well as determining licensing requirements and reserve requirements for issuers.
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Featured image: Shutterstock/Larich/Sensvector