June 15, 2021

Fed releases stablecoins report

Fed releases stablecoins report

The US Federal Reserve published a new report on financial stability, the authors of which evaluate the effect of stablecoins on the financial system is quite positive.

The report states that stable coins canact as a “new medium of exchange”, can complement existing payment systems, and are also a solution to the problem of cryptocurrency volatility. However, Fed officials also warned that using stablecoins may be associated with certain risks.

In addition, the document noted that inthe lack of an effective system for calculating, buying out and managing risks, stable currencies can lead to “loss of confidence” and mass liquidations, which “seriously damage economic stability”.

In addition, the regulator notes that all issuersstablecoins, operators and intermediaries must comply with regulatory requirements. Representatives of these groups should monitor compliance with AML / KYC laws at their sites. In addition, they must protect their customers from fraudsters and provide them with all the necessary information about their rights and obligations.

Recall that recently economist Stephen Moore, previouslyunsuccessfully nominated by US President Donald Trump as a candidate for the position of head of the Fed, officially announced the launch of his new stable coin “Frax”.

According to the materials cryptobriefing.com