These statements correspond to his testimony in the Planning for Surprises, Learning from Crises talk in the framework of the Financial Stability Conference 2021, organized by the Federal Reserve Bank of Cleveland and the Cleveland Office of Financial Research.
The transcript of his speech was posted on the Reserve’s official site, titled Reflections on Stablecoins and Payments Innovations.
It should be noted that, previously, the US Treasury Department assured that Congress should regulate these cryptocurrencies such as, for example, prioritizing the mandatory identification of users (KYC) who operate with them.
Waller referred to that Treasury report and said it is only focused on “the cost-benefit equation” and criticized asking for limits on purse providers and other non-bank intermediaries. For him “It reduces the appearance and efficiency of these assets as forms of payment.”
The Fed head also highlights that stablecoins offer “a broader range of services through smart contracts”. He highlighted the speed and the lower values compared to traditional transactions.
“I understand the attraction of forcing a new product into an old, familiar structure, but that approach would eliminate a key benefit of stablecoins, which is serving as a viable competitor for banks in their role as payment providers.”, he assured.
Waller said that instead of “imposing the entire rule book for the banking sector,” a specific regulatory framework for stablecoins should be established.
Source From: Ambito
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