FDIC Head: We Should Be Cautious About Using Stablecoins in Payments
According to the FDIC chairman Martin J. Gruenberg, stablecoins as a means of payment deserve consideration and the agency expects to collect more information for the proper regulation of banks in relation to crypto assets.
He has lamented the current state of affairs:
“Once the risks associated with some cryptocurrencies become more acute, either the underlying technology changes or the use case or business model changes. New digital assets regularly enter the market with differentiated risk profiles. As a result, the external similarity may hide significantly different risks.”
Expanding the industry data will allow the FDIC to provide feedback through letters that banks should use to inform the agency of their activities. He has added that clients and insured institutions also need a better understanding of how the agency works.
