Regulating stablecoins is more important than issuing a digital dollar. This was stated by Federal Reserve Chair Jerome Powell during an online conference at Princeton University.
According to him, American authorities are not aiming to be the first in the world to issue a central bank digital currency. The United States has already been a pioneer by creating the world’s reserve currency, Powell clarified.
What is a central bank digital currency (CBDC)?
The Fed chair is confident that “it will be years, not months” before the release of a CBDC, despite regulator efforts to study the prospects of a digital dollar.
“There is an obvious need for a CBDC. We are focused on delivering better regulation of potential global stablecoins. This issue remains a priority because they could become significant in an instant,” Powell added.
According to the Fed chair, investors and traders should have confidence in the stability and safety of the digital assets they acquire.
In January, the Office of the Comptroller of the Currency, part of the U.S. Treasury allowed banks to issue stablecoins.
Earlier, Caitlin Long, founder of Avanti, said that the OCC’s new rules regulating the crypto industry will leave small banks on the sidelines.
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