Is the U.S. government finally beginning the road toward an American digital currency regime?
On Friday, the Financial Stability Oversight Council, under the leadership of Treasury Secretary, Janet Yellen, announced to the world that U.S. financial regulators were ready to move toward some regulation that would address the risk to the financial system presented by stablecoins.
Stablecoins are digital currencies that are pegged to national currencies, like the U.S. dollar.
The growth of stablecoins has been enormous and, the report stated that the threat of these assets is to impose substantial volatility on financial markets.
These threats come from volatile prices in the market, the potential for fraud, and the illegal transfer of funds across geographic boundaries.
The report said,
"If stablecoins are marketed with the claim that they will maintain a stable value, they may be subject to widespread redemptions and asset liquidations if investors doubt the credibility of that claim."
In other words, more stringent risk-management standards must be imposed upon the market.
This day was coming. To me, it was just a matter of time.
But, as my readers know, I have been anxious that the U.S. government was not moving fast enough.
Continue reading: https://seekingalpha.com/article/4476270-blockchain-is-future-of-finance
On Friday, the Financial Stability Oversight Council, under the leadership of Treasury Secretary, Janet Yellen, announced to the world that U.S. financial regulators were ready to move toward some regulation that would address the risk to the financial system presented by stablecoins.
Stablecoins are digital currencies that are pegged to national currencies, like the U.S. dollar.
The growth of stablecoins has been enormous and, the report stated that the threat of these assets is to impose substantial volatility on financial markets.
These threats come from volatile prices in the market, the potential for fraud, and the illegal transfer of funds across geographic boundaries.
The report said,
"If stablecoins are marketed with the claim that they will maintain a stable value, they may be subject to widespread redemptions and asset liquidations if investors doubt the credibility of that claim."
In other words, more stringent risk-management standards must be imposed upon the market.
This day was coming. To me, it was just a matter of time.
But, as my readers know, I have been anxious that the U.S. government was not moving fast enough.
Continue reading: https://seekingalpha.com/article/4476270-blockchain-is-future-of-finance
