Feds Powell says stablecoins need appropriate regulatory framework – Reuters

REUTERS/Dado Ruvic/Illustration/File PhotoJuly 14 (Reuters) – Federal Reserve Chair Jerome Powell on Wednesday stated one of the stronger arguments for the U.S. central bank to set up a digital currency is that it might undercut the need for private options such as cryptocurrencies and stablecoins.Asked during a congressional hearing if having a digital currency released by the Fed would be a more practical option than having numerous cryptocurrencies or stablecoins emerge in the payments system, Powell stated he agreed.” I believe that may be the case and I think thats one of the arguments that are offered in favor of digital currency,” Powell stated during a hearing prior to the U.S. House of Representatives Financial Services Committee. He explained it as a crucial action that accelerates the Feds efforts to identify if it must release its own digital currency.Powell said he was doubtful that crypto properties would end up being a main payments lorry in the United States but said stablecoins might gain more traction.
Modifying by Chizu Nomiyama and Paul SimaoOur Standards: The Thomson Reuters Trust Principles.