The Federal Reserve Governor Christopher Waller (Christopher Waller) said that stablecoins do not need to be subject to all regulations like banks. He disagreed with some of the recommendations of the President’s Financial Markets Working Group on the regulation of stablecoins. He explained that although banks should be able to issue stablecoins, not all stablecoin issuers must be banks.

Fed’s Waller disagrees that stablecoins need to be fully regulated by banks

Federal Reserve Governor Christopher Waller (Christopher Waller) talked about stablecoin regulation at a virtual meeting organized by the Cleveland Federal Reserve on Wednesday.

He emphasized that “the regulatory framework for payment of stablecoins should directly, comprehensively and narrowly address the specific risks brought about by these arrangements.” He pointed out:

This does not necessarily mean implementing a complete bank rule book, which is partly geared towards lending activities, not payments.

Waller stated that he disagreed with some of the recommendations made by the President’s Financial Markets Working Group (PWG).

The PWG, in cooperation with the Office of the Comptroller of the Currency (OCC) and the Federal Deposit Insurance Corporation (FDIC), released a report on stablecoins on November 1. The report calls for a sense of urgency for the implementation of bank-like supervision on stablecoins.

Waller explained that he was satisfied that banks were able to issue stablecoins, but did not agree to allow banks to issue stablecoins only.

Waller also commented on the Central Bank Digital Currency (CBDC), which the Federal Reserve is exploring and aims to release a report on the digital dollar in the near future.

The Fed governor said that he is still skeptical about the need for CBDC and believes that the Fed should not create a CBDC aimed at reducing payment costs. He also pointed out that there has been “real and rapid innovation” in the payment field.

He explained in October that the digital dollar would put the Fed in direct competition with commercial banks, and questioned whether it was a good idea. “I still doubt whether the Federal Reserve CBDC can solve any major problems facing the U.S. payment system,” he said. think.

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