Head of U.S. Agency: Stablecoins Integrate with federal plans

Stablecoins in particular have historically been viewed as 

Systemically hazardous by the US Federal Reserve (Fed).

Stablecoins in particular have historically been viewed by the U.S. Fed as systemically hazardous. It was discovered earlier this year that the Financial Stability Oversight Council has the authority to regulate the crypto asset class. The specified power would then enable the regulators to impose stronger regulations on stablecoins. However, the head of a US government agency expressed satisfaction with the potential of cryptocurrencies.

Plans for Stablecoins and CBDCs by the Fed

Martin Gruenberg, the interim chairman of the Federal Deposit Insurance Corp., discussed the use of stablecoins in a recent article. He discussed the Federal Reserve's intentions for a digital currency issued by the US central bank while speaking on Thursday at the Brookings Institution. He claimed that if institutions had a better grasp of the risks associated with the asset class, industry counsel might be given to them. 

FedNow Payments Integration

In a positive development, the Fed's next plans may include the use of stablecoins, according to the chair of the Federal Deposit Insurance Corp. "A prospective stablecoin-based future payments system should complement the Federal Reserve's upcoming FedNow service as well as a potential U.S. central bank digital currency," the report states. The Federal Reserve banks are actively creating a new quick payment service called FedNow. When it comes to offering fast payment services, the service acts as a platform for innovation for financial institutions and their service suppliers. The FedNow Service will give customers a variety of options for clearing and settling rapid payments while also encouraging redundancy to increase resilience.