Nov 17 (Businesshala) – A strong regulatory and supervisory framework is needed to ensure that stablecoins are a safe form of payment, but not necessarily subject to the same rules as all banks, said Federal Reserve Board Governor Christopher Waller said on Wednesday. ,
Waller also said that while he would be fine with the idea of banks being able to issue both bank deposits and stablecoins, he disagrees with the idea that only banks should be able to issue stablecoins.
In remarks prepared for a virtual conference hosted by the Cleveland Fed, Waller said, “The regulatory and supervisory framework for stable payments must address the specific risks that arise from these arrangements — directly, fully and narrowly. ” “But that does not mean applying the full banking rulebook, which is geared towards lending activities, not payments.”
A Fed official said he still doubts the need for a central bank digital currency, or CBDC, because there is already “real and rapid innovation” happening in the payments sector. (Reporting by Jonal Marte; Editing by Andrea Ricci)