The head of the Board of Governors of the Federal Reserve, Mr. Waller, affirmed that stablecoins create competitive momentum for the payment system but do not threaten financial security.
In his statement on July 18, Mr. Waller emphasized that stablecoins contribute to promoting payment innovations without posing serious risks to the current financial system's stability.
MAIN CONTENT
Stablecoins increase competition in the traditional payment system.
The Fed's view does not consider stablecoins as a threat to financial security.
The assessment is based on the official statement of Mr. Waller, a member of the Fed's Board of Governors.
What are stablecoins and what is their role in the current payment system?
Mr. Waller, a member of the Fed's Board of Governors, stated that stablecoins play a role in promoting healthy competition in payments. This means that stablecoins help diversify choices for users and improve the efficiency of financial transactions.
Stablecoins are a type of cryptocurrency designed to maintain a stable value, often pegged to fiat currencies like the USD. Due to this stability, stablecoins support quick payment transactions and cross-border money transfers.
Why does the Fed not see stablecoins as a risk to national finance?
Based on the official statement during the meeting on July 18, Mr. Waller believes that although stablecoins affect the payment market, they do not pose a significant risk to national financial stability.
This view is supported by many financial experts when stablecoins are tightly regulated and comply with current regulations, minimizing the potential for volatility or systemic failures that could affect the larger economy.
Stablecoins encourage innovation and provide competitive pressures in payments, yet, they do not pose a systemic risk to the financial system at present.
Christopher Waller, Member of the Board of Governors of the Federal Reserve, 18/07/2024
What challenges and opportunities do stablecoins bring to the global payment system?
Mr. Waller affirmed that stablecoins provide opportunities to expand instant payment capabilities, lower costs, and increase transparency. However, risk management and ensuring legal compliance remain important tasks for regulators.
For example, current stablecoins like USDC and USDT have contributed to increased liquidity and supported more efficient international payments, especially in the context of increasingly stringent financial regulations.
Frequently Asked Questions
1. What are stablecoins and why are they important?
Stablecoins are cryptocurrencies that maintain a stable value, facilitating quick payments, reducing costs, and enabling cross-border transactions.
2. Does the Fed have concerns about the risks of stablecoins?
Mr. Waller from the Fed stated that currently, stablecoins are not considered a serious risk to financial stability, especially when managed systematically.
3. How do stablecoins affect the traditional payment system?
They increase competition, promote technological innovation, and diversify payment service options for users.
4. How to manage risks associated with stablecoins?
Transparent regulations, strict controls, and close supervision of stablecoin issuance and transaction activities are necessary.
5. What examples show that stablecoins have created a positive impact?
Stablecoins like USDC have improved liquidity and the speed of international transactions, contributing to the innovation of the payment system.
Source: https://tintucbitcoin.com/stablecoin-kich-thich-thanh-toan-an-toan/
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