Unlike other cryptos, stablecoins inspire relatively more trust in users. This, because of the stability of their value which is correlated to that of a fiat currency. However, their monetary status had never been officially recognized. At least, until Jerome Powell, the chairman of the US Federal Reserve (Fed), does. A turning point?
Stablecoins, a form of money according to Jerome Powell
Jerome Powell made a shocking statement about stablecoins this Wednesday, June 21. According to the boss of the Fed, these cryptos, used among other things to settle transactions, are a form of currency.
As a result, these should be subject to greater interventionism by the US central bank in terms of regulation. In any case, this is the opinion expressed by the official during the hearing in which he took part in the Congress.
It must be said that in many respects, Jerome Powell somewhat throws a stone in the pond. Indeed, his statement that stablecoins are a form of money is unheard of. Because, until now, no American official had publicly recognized the monetary nature of these cryptos.
Stablecoins should also be the subject of new parliamentary exchanges to set the legislation that will be applied to them. The House Financial Services Committee has already scheduled review of two cryptocurrency bills for late next month, although the outcome of that review remains uncertain.
It should be noted that last year, similar parliamentary debates were held around the issue of crypto regulation. However, these discussions had not led to concrete results, largely due to differences of opinion on the role of the Fed in this context. »
Receive a digest of news in the world of cryptocurrencies by subscribing to our new service of daily and weekly so you don’t miss any of the essential Tremplin.io!
