US Ketar-ketir, Federal Reserve Will Supervise Stablecoins

The Fed wants to tighten stablecoin regulations. (Photo; Doc. GlobalStablecoin)

JAKARTA - Deputy Chairman of the Federal Reserve Council for Supervision, Michael Barr, highlighted the potential risks of stability in the stablecoin sector and encouraged stronger regulations. For your information, stablecoins are crypto assets whose value is stable following fiats such as USDT Tether and USDC Circle.

Speaking at DC Fintech Week, Barr explained that the Federal Reserve plans to issue strict federal regulations to oversee stablecoins, ensuring that the central bank has full control over this cryptocurrency offering and issuance.

The reason is, the Fed wants to protect the dollar as a currency of the country. On the other hand, they are also worried about the possibility of financial disruption caused by this stablecoin issued by the private sector.

Along with the rapid growth of the crypto ecosystem, the Federal Reserve feels the need to draw up a strong regulatory framework to ensure stability in the digital currency world.

Barr stated that the Federal Reserve is considering various technologies to support the issuance of digital currencies that are fully overseen by central banks. However, he also acknowledged that such changes would require approval from Congress and the government before it could be implemented.

Previously, heated debates over stablecoin regulations had taken place at the US congressional level, with some members of Congress supporting a bill to regulate it. Barr also discussed other aspects of digital currency, including the Central Bank Digital Currency (CBDC), which is increasingly becoming a topic of conversation in various circles.

Apart from the United States, other regions such as the UK are also considering regulations for their respective stablecoin ecosystems. The seriousness of the Federal Reserve in overseeing cryptocurrencies is a major concern for stakeholders in the crypto industry.