- United States Treasury Secretary Yellen has specified that a Central Bank Digital Currency (CBDC) might lessen the expansion of stablecoins
- She likewise discussed that both might exist side-by-side as stablecoins might provide much faster, effective, and less expensive options to a CBDC by the United States Fed
United States Treasury Secretary Yellen has drifted the concept that a Central Bank Digital Currency might lessen the expansion of stablecoins. In addition, she described that a Central Bank Digital Currency might exist side-by-side with stablecoins in the best environment.
Madam Secretary Yellen made the remarks throughout a Financial Services hearing by the U.S House Committee on ‘The Annual Report of the Financial Stability Oversight Council’, and after Congressman Stephen Lynch asked whether the over 200 stablecoins presently inflow might endure the development of a Central Bank Digital Asset provided by the United States Federal Reserve.
In her reaction, United States Treasury Secretary Yellen stated:
I believe the advantage of providing a Central Bank Digital Currency would be, that it may lessen the expansion of these stablecoins, however, it depends upon the style … precisely how the Central Bank Digital Currency is presented … there are problems around that … personal privacy is a problem with the Fed amassing [consumer] information.
But there might continue to be stablecoins that co-exist with a reserve bank digital currency. They might use some advantages in regards to faster and more effective and more affordable payments. I believe we need to be open to development …
A Comprehensive Framework on Digital Assets is Needed
Earlier and throughout the same Committee hearing, Congressman Jim Himes asked the United States Treasury Secretary Yellen when she believed the increase of digital possessions ought to begin raising warnings. Congressman Himes mentioned the 2008 monetary crisis and asked when the overall market cap of cryptocurrencies ought to begin being an issue. In action, United States Treasury Secretary Yellen mentioned the following:
I can not provide you a numerical cut off [based on market capitalization], however, what I do see is that using digital properties is increasing quickly, that they provide the same threats, run threats, payment threats, and truly, we require an extensive structure so that there are no spaces in the policy.