Fed Vice President: We should say “yes” to stablecoins
Unlike his colleagues at the Federal Reserve, Fed vice chairman Randal Quarles expressed support for stablecoins.
During an Association of Banks annual meeting held in Utah on June 28, Randal Quarles, vice chairman of the US Federal Reserve (Fed) said the US should find a way to say “yes” to stablecoins.
Also during the conference, Mr. Quarles added that the US Federal Reserve still has a “strong regulatory interest” in stablecoins. However, this does not mean that it will become a threat.
“Once our concerns are resolved, we should say ‘yes’ to these products instead of trying to find a way to say no.” – Fed Vice President gave his opinion.
Quarles also downplayed whether Bitcoin (BTC) or CBDCs from other countries pose a “potential threat” to the dollar.
“In fact, a combination of improvements in the current payment system is imminent, such as various instant payment initiatives combined with the cross-border efficiency of properly structured stablecoins. Any effort to develop a central bank digital currency (CBDC) could become unnecessary.” – Mr. Randal Quarles shared.
Randal Quarles’ comments contrast sharply with recent comments from other Fed officials. One such example is Lael Brainard, Governor of the Federal Reserve, who warned that stablecoins pose risks to consumers and businesses.
Recently, another senior Fed official, Eric Rosengren, President of the Federal Reserve Bank of Boston, mentioned Stablecoin Tether (USDT) as one of the “financial stability challenges” the Fed is monitoring.
You may be interested in: