Cryptocurrency Statement by Janet Yellen: Terra and UST Details

US Secretary of the Treasury Janet Yellenduring the IMF’s annual meeting today. cryptocurrenciestalked about stablecoins and CBDCs.

Yellen said at the Annual IMF meeting that there are unlimited types of regulations they can apply for cryptocurrencies. However, according to the minister, the most urgent issue to take action is on the gaps in the law.

“Since digital assets do not have a physical form, it is very difficult for us to organize. As the government, we want to work with the whole Congress on this issue.”

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During the session, participants told Yellen stablecoin and CBDC He also asked his opinion about it. The minister first touched on the benefits of CBDCs. Yellen reiterated her belief that digital currencies will solve “many of the problems of the financial system” and stated that they have many years ahead of them to develop the digital dollar.

The Treasury Secretary is a little cautious about stablecoins. Yellen talked about the collapse of Terra, which has been a huge hit in the past months:

“Everybody saw Terra’s collapse. There is no guarantee that this will not happen in another stablecoin.”

Yellen thinks Terra’s collapse benefits Tether the most. According to the minister, Tether “broke the money” by gaining more market dominance following the bankruptcy of the UST.

Cryptocurrency regulations in the USA have not been on the agenda in recent months. Last week, the Financial Stability Oversight Council (FSOC) released a report on what the limit of cryptocurrency regulations will be.