Jerome Powell: "Stablecoins should be regulated like bank deposits" – Bits Media

Federal Reserve Chairman (FRS) USA Jerome Powell (Jerome Powell) considers, that stable cryptocurrencies should be regulated as bank deposits and mutual funds of the cash market.

In his speech in front of the lower house of the US Congress Powell said, that stablecoins should be subject to more strict normative control, despite , that they are attached to fiat currencies. Powell said about this, when lawmakers raised the issue of USDT stableco, produced by Tether. Previously, Tether claimed, that each USDT is tied to a real US dollar in a ratio 1:1. In May it became known, what 76% USDT is backed by traditional currencies and obligations in them.

“Short -term deposits and bills are an investment class of securities with good liquidity. But during the financial crisis, the market simply "disappears", And people want to return their money back. Everything is very simple: Stablecoins are also economic activity. They are highly similar to bank deposits and mutual funds, Therefore, it is necessary to regulate stable cryptocurrencies in the same way ", - said Powell.

He added, that in the USA it is customary to invest in safe assets. However, the regulatory framework, to which bank deposits fall, not used for stablecoins. According to the chairman of the Fed, so that they become part of the monetary system, you need to develop special provisions, which will control stable cryptocurrencies.

Powell also commented on the development of digital currencies of central banks. He said, that if the state can create a controlled digital dollar ecosystem, This will eliminate the need for private cryptocurrencies, Including Bitcoin. The United States will launch several pilot programs for testing a digital dollar this year.

Recall, that recently the president of the Federal Reserve Bank (FRB) Boston Eric Rosengren (Eric Rosgren) expressed fears, that USDT can violate the work of short -term credit markets.