The Fed organizes a conference on stablecoin, paving the way for payment innovation

The Federal Reserve of the United States (#Fed ) will hold a Payment Innovation Conference on October 21, for the first time introducing stablecoin, tokenization, DeFi, and AI into the high-level discussion agenda. This event demonstrates a clear shift in the Fed's stance, from cautious to more open towards crypto.

Changing Perspectives and National Interests

The conference takes place against the backdrop of the Fed having made several moves to loosen policy, retracting recommendations that restricted banks from participating in crypto and ending the state of "debanking" for crypto companies. Fed officials now view #stablecoin not just as a technology, but also as a tool to enhance competition in payments and strengthen the position of the USD globally. The issuance and use of stablecoin is also believed to increase demand for U.S. Treasury bonds.

Potential and Impact

Research indicates that the Fed can still maintain control over monetary policy in a tokenized financial system, and may even be able to execute decisions faster through smart contracts. The boom in the stablecoin market and the Fed's interest are signs that crypto is becoming an indispensable part of the financial system. This conference is expected to open new opportunities, reduce legal burdens, and encourage U.S. banks to enter this field, thereby enhancing the safety and efficiency of the entire payment system. #anh_ba_cong