2 years ago
Quick take:
- US Treasury Secretary Yellen has stated that a Central Bank Digital Currency (CBDC) could diminish the proliferation of stablecoins
- She besides mentioned that some could coexist arsenic stablecoins could connection faster, efficient, and cheaper alternatives to a CBDC by the US Fed
US Treasury Secretary Yellen has floated the thought that a Central Bank Digital Currency could diminish the proliferation of stablecoins. In addition, she explained that a Central Bank Digital Currency could coexist with stablecoins successful the close environment.
Madam Secretary Yellen made the comments during a Financial Services hearing by the U.S House Committee connected ‘The Annual Report of the Financial Stability Oversight Council’, and aft Congressman Stephen Lynch asked whether the implicit 200 stablecoins presently successful circulation could past the emergence of a Central Bank Digital Asset issued by the US Federal Reserve.
In her response, US Treasury Secretary Yellen said:
I deliberation a payment of issuing a Central Bank Digital Currency would be, that it mightiness diminish the proliferation of these stablecoins, but it depends connected the design…exactly however the Central Bank Digital Currency is introduced…there are issues astir that…privacy is an contented with the Fed amassing [consumer] data.
But determination could proceed to beryllium stablecoins that co-exist with a cardinal slope integer currency. They whitethorn connection immoderate benefits successful presumption of faster and much businesslike and cheaper payments. I deliberation we should beryllium unfastened to innovation…
A Comprehensive Framework connected Digital Assets is Needed
Earlier and during the aforesaid Committee hearing, Congressman Jim Himes asked US Treasury Secretary Yellen erstwhile she thought the emergence of integer assets should commencement raising reddish flags. Congressman Himes cited the 2008 fiscal meltdown and asked erstwhile the full marketplace headdress of cryptocurrencies should commencement being a concern. In response, US Treasury Secretary Yellen stated the following:
I cannot springiness you a numeric chopped disconnected [based connected marketplace capitalization], but what I bash spot is that the usage of integer assets is rising precise rapidly, that they contiguous the aforesaid risks, tally risks, outgo risks, and really, we request a broad model truthful that determination are nary gaps successful regulation.
English (US) 