- 22 July 2021
- Posted by: Cryptovalues
- Category: Central Banks, Cryptovalues News, World News
As technology moves forward, there is a strong need to create regulations that can affect the monetary system.
Janet Yellen, currently U.S. Treasury Secretary, strongly feels the need to regulate stablecoins, a type of cryptocurrency that has seen recent and rapid growth and remains largely unsupervised, and asks authorities to “act promptly.”
Last Monday, there was a meeting where they noted the rapid growth of the sector, the potential uses of stablecoins as a means of payment, and the potential risks to end users and the financial system and national security.
Yellen insisted on ensuring that there is an appropriate regulatory framework in the United States, and the Financial Markets Working Group, consisting of the Office of the Comptroller of the Currency and the Federal Deposit Insurance Corporation, is expected to issue recommendations in the coming months.
Remember, the value of a stablecoin is referenced to a national currency or commodity and backed by reserves of that underlying asset.
Unlike cryptocurrencies, stablecoins are a more attractive option for those looking for a digital form of money that maintains a constant value.
Understanding the regulatory gap can only be viewed positively, as it will bring transparency over time and make it easier for those who don’t see it as particularly regulated and transparent to approach the industry.
Read more: Readout of the Meeting of the President’s Working Group on Financial Markets to Discuss Stablecoins