The US Federal Reserve Council has warned that a stablecoin crisis could harm the global economy, and suggested the steps that issuers should take to maintain the status quo.
Central bank forecast made inThe six-month Financial Stability Report is based on the worst outcome of the stablecoin issue, when their owners begin to massively appeal to issuers with a request to return the fiat currencies invested in the asset.
The Fed report expresses concern thatThe process of issuing stablecoins may cause problems, both in the area of operations, as well as liquidity or lending. “This loss of confidence could lead to massive demands by stablecoin holders on the return of their deposits in fiat currency,” the statement said.
“In the worst case, the requirements of the holdersmay not be fully satisfied, which may lead to serious consequences for domestic or international economic activity, asset prices or financial stability. ”
Since the concept was introduced in Maystablecoin Libra, Fed managers, along with US regulators and foreign colleagues sounded the alarm. The report notes that in addition to the issue of digital currency, integration with the social network of mass consumers can have disastrous consequences.
“Initiatives to produce stablecoins thatbased on existing large and cross-border client networks, such as Facebook’s Libra, have the potential for rapid and wide distribution, ”the report says.
The report summarizes the main problems that concern regulators and suggests the steps necessary to prevent complex situations:
- Issuers should disclose how the mechanism of investment in stablecoin works;
- Issuers must protect the confidentiality of customer data by maintaining KYC records to prevent illegal use of stablecoins;
- Issuers should disclose terms of service;
- Issuers must inform customers if they have any rights to the underlying asset.
“As the G7 members noted,“ not a single globalThe stablecoin project should not be launched until the legal, regulatory and regulatory problems and risks set forth [in this report] are properly resolved with appropriate designs and compliance with clear and proportionate regulatory standards, ”the document says.
Recently it became known that the US Federal Reserve is looking for a specialist to study digital currencies, and earlier Congressmen called on the Fed to develop its own digital currency.