US Treasury Secretary Janet Yellen to discuss about stablecoin with regulators this week


U.S. Treasury Secretary Janet Yellen is meeting with President Biden‘s Working Group to discuss about stablecoin with regulators. In this meeting, the discussion of the "interagency work" on stablecoins will be happening. The meeting will happen on July 19 to discuss the rapidly growing class of digital currencies that has been facing growing scrutiny from policymakers.
About the
meeting:
Stablecoin is
one of the popular digital currency which has been designed to be less volatile
in nature other than cryptocurrencies as it pegs the market value to an outside
asset like the U.S. dollar. The regulators are quite concerned about the transparency that
shall be maintained while the currency to be backed up.
To discuss on
all this matter, today U.S. Treasury Secretary Janet Yellen is meeting
President’s Working Group on Financial Markets. Also, there will be representatives
from the Office of the Comptroller of the Currency and the Federal Deposit
Insurance Corporation.
U.S. Treasury
Secretary Janet Yellen will meet Monday with the President’s Working Group on
Financial Markets, Office of the Comptroller of the Currency and FDIC to
discuss the role of stablecoins in the financial system.
While commenting on the meeting, Yellen stated, “Bringing together regulators will enable us to assess the potential benefits of stablecoins while mitigating risks they could pose to users, markets, or the financial system.” She further added, “In light of the rapid growth in digital assets, it is important for the agencies to collaborate on the regulation of this sector and the development of any recommendations for new authorities.”
Regulators
concern on the change:
Earlier in the same
year, Visa started supporting the payment on the network which shall have the
dollar back with stablecoin USD Coin. There has been quite many risks and benefits
of stablecoins.
Considering both
the aspects, regulators have raised some concerns associated with stablecoins
trading transparency. The concern on how well the market participants should be
relying on it for trading has been still a major concern.
As the interest
and popularity has increased The President’s Working Group on Financial Markets
are discussing on the same.

Shivangi Mujumdar
CBW - External Analyst
INDIA