U.S. Federal Reserve Chair Jerome Powell said it would consult the public about a potential central bank digital currency (CBDC) in the summer. He acknowledged both the benefits and risks of stablecoins, hinting that new regulations are coming. Given the growth in US-based stablecoin USDC from $2.9 billion to $18.7 billion in just six months, and the soon-to-be-released Diem (formerly Libra) dollar stablecoin, that’s no surprise.
This was more than a press release. Powell gave a prepared speech to camera to accompany the announcement. The takeaway is that these topics are high on the agenda.
Until now, the Federal Reserve has seemed a little reticent regarding a digital dollar, despite the Boston Federal Reserve conducting research with the Massachusetts Institutes of Technology (MIT). This announcement had a different, more pro-innovation tone. And perhaps a sense of urgency?
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