World

Treasury Secretary Janet Yellen discusses stable coins with regulators next week

Treasury Secretary Janet Yellen will speak at a daily press conference on May 7, 2021 at the White House Briefing Room in Washington, DC.

Sole Robe | AFP | Getty Images

US Treasury Secretary Janet Yellen will meet next week with the President’s Working Group on Financial Markets to discuss the role that Stablecoin may play in the financial system.

The meeting will take place on Monday and will be attended by representatives of the Office of the Comptroller of the Currency and the Federal Deposit Insurance Corporation, the Treasury announced on Friday.

Stablecoin is a digital currency designed to be less volatile than other cryptocurrencies by fixing its market value to external assets such as the US dollar.

“By integrating regulators, we assess the potential benefits of stablecoin while reducing the risks that stablecoin can pose to users, markets, or the financial system,” Yellen said in a statement on Friday. You will be able to do it. ” “In light of the rapid growth of digital assets, it is important for government agencies to work together to regulate this sector and develop recommendations to new authorities.”

Regulators are concerned about the transparency of stablecoin trading, the reserves that support them, and how much market participants rely on them to enable trading in decentralized finance, also known as DeFi. I am becoming more and more concerned. They are growing in popularity and interest. Earlier this year Visa said it will start supporting payments On a network of stable coins USD coins backed by dollars.

As more companies with crypto businesses publish or are preparing to do so Coinbase And Circle, The industry needs to further clarify regulations on stable coins.On Thursday, Federal Reserve Board Chair Jerome Powell confirmed in front of the Senate Banking Commission that stable coins were needed. “The right framework.”

Treasury Secretary Janet Yellen discusses stable coins with regulators next week

Source link Treasury Secretary Janet Yellen discusses stable coins with regulators next week

Back to top button