Jerome Powell on Regulations for Stablecoins: New Framework for the Digital Financial World

Jerome Powell Supports Regulations for Stablecoins

The Chair of the Federal Reserve of the United States, Jerome Powell, participated in a meeting with Democrats in the House of Representatives, where the need to establish regulatory frameworks for stablecoins was discussed. Powell endorsed negotiations for a future law regulating these digital currencies during a private meeting with the House Financial Services Committee.

Backing for Stablecoin Regulatory Guidelines

At the meeting, a participant reported that Powell supported the establishment of regulatory guidelines for stablecoins, expressing satisfaction with the progress made in developing appropriate frameworks for this sector. This is an important signal for the financial market, which is awaiting clear regulations.

Digital Dollar and CBDC Research

During the meeting, Powell also commented on central bank digital currencies (CBDCs), informing that the Federal Reserve had conducted research on a potential digital dollar. However, formal approval of a CBDC by Congress is still ahead of us, and a decision in this matter will require statutory acceptance.

Risks and Benefits of the Digital Dollar

Jerome Powell has previously emphasized that digital currencies, including the digital dollar, carry both risks and potential benefits. Currently, Congress is negotiating an act regulating stablecoins, which could impact supervision of the sector and the potential implementation of a CBDC.

Federal Reserve Policy and Economic Changes

Powell, as the Chair of the Federal Reserve, is at the forefront of making decisions regarding monetary policy in response to changing economic conditions. His involvement in regulations related to digital currencies and stablecoins reflects a concern for financial stability and the modernization of the financial sector.