“US Federal Reserve Launches New Team to Regulate Unregulated Stablecoins”
The US Federal Reserve (Fed) has announced plans to create a new team of experts to tackle the growing concern of unregulated stablecoins. The central bank’s Vice Chair for Supervision, Michael Barr, made the announcement during an event at the Peterson Institute for International Economics in Washington on March 9.
Barr acknowledged that while crypto technology could have positive impacts on the financial system, it can only become a reality with proper regulation. The Fed has expressed concerns about stablecoins, which are widely used but do not have the strong regulatory watch they need.
The new team will be responsible for keeping up-to-date with developments in the crypto space and ensuring that the Fed is aware of innovations in the industry to ensure proper regulatory monitoring. Barr emphasized the importance of regulation, stating that it is necessary to protect consumers and maintain financial stability.
Stablecoins are digital currencies that are pegged to a stable asset, such as the US dollar, to minimize volatility. They have become increasingly popular in recent years, with some estimates suggesting that the market for stablecoins has grown to over $100 billion.
However, the lack of regulation has raised concerns about the potential risks associated with stablecoins. The Fed’s move to create a specialized team to monitor stablecoins is a significant step towards addressing these concerns and ensuring that the financial system remains stable and secure.