February 20, 2024

Fed releases stablecoins report

Fed releases stablecoins report

The U.S. Federal Reserve has published a new report on financial stability, the authors of which estimatethe 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 stablecoin issuers, operators, and intermediaries must comply with regulatory requirements.Representatives of these groups must monitor compliance with AML/KYC laws on their sites.In addition, they must protect their customers from scammers 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”.

Based on materialscryptobriefing.com