Fed Vice Chairman Lael Brainard made statements about cryptocurrencies at the conference held on Wednesday.
FED vice chairman Lael Brainard made interesting statements about cryptocurrencies and stablecoins in his speech at the ‘Clearing House and Bank Policy Institute’ annual conference on September 7th. In his statements, he underlined that the cryptocurrency market has the same risks as traditional markets, but special solutions are required in some areas.
We found that the crypto financial system has all the risks we are familiar with from traditional finance. But given crypto’s unique characteristics, there is a need to establish clear regulatory measures.
in May, about 60 billion dollars algorithmic stablecoin with value TerraUSDReferring to the collapse of the (UST), Brainard said in his speech stablecoin reiterated its risks. Claiming that there will be many more such tokens created by the private sector in the future, the US Federal Reserve has its own Digital Central Bank Money (CBDC) He stated that his investigations are continuing on whether to remove it or not.
Stablecoins are one of the areas that I think have the most risk potential if not properly regulated, and of course these risks have the potential to spread easily inside the financial system due to the functional nature of stablecoins.