Meeting with Jerome Powell: Regulations on Stablecoins and Digital Dollar Project
The Need for Regulation of Stablecoins – Jerome Powell Meeting with Democrats
The Federal Reserve Chairman, Jerome Powell, recently met with Democrats in the House of Representatives to discuss the necessity of introducing regulations regarding stablecoins. The discussion also covered the potential project of a central bank digital dollar (CBDC).
Support for Negotiations on Stablecoin Legislation
During a private meeting with the House Financial Services Committee, Jerome Powell expressed his support for conducting negotiations on future legislation regulating stablecoins. He also mentioned the need to establish guidelines for such digital assets.
Research on the Digital Dollar
During the meeting, Powell informed participants that the Federal Reserve is conducting research on the potential CBDC. However, the Chairman does not yet recommend formal approval of such a project by Congress, stating that a decision on the introduction of a CBDC would need to be preceded by Congressional authorization.
Legislative Guidelines for the Fed in the Context of Digital Currencies
Powell emphasized that the decision to introduce a central bank digital dollar would need to be preceded by Congressional authorization, signaling the need for appropriate legislative directives regarding projects related to digital currencies. Currently, the Federal Reserve is negotiating a bill regulating stablecoins, which could also impact any potential digital dollar project.
Risks and Benefits Associated with the Digital Dollar
The Chairman has previously expressed concerns about the risks associated with introducing a digital dollar while also pointing out the benefits that such an initiative could bring. Currently, Congress is negotiating a bill regulating stablecoins, which could also influence the potential development of a central bank digital dollar.
