Acting FDIC Chairman Martin Gruenberg regards payment stablecoins as those used for mainstream real–time payments as opposed to the existing stablecoins, which are primarily used within the crypto ecosystem. At a Brookings Institute event today, he said payment stablecoins should be issued on permissioned blockchains only.
His rationale is the ability to know all the participants, including nodes and validators, to enforce sanctions and anti-money laundering compliance.
Responding to a question after his speech, he said, “A public unpermissioned blockchain poses enormous challenges in terms of basic supervisory responsibility for safety and soundness, consumer protection and anti-money laundering. The(re is) potential for a permissioned blockchain where you can address those issues. If you’re going to consider the utilization of the technology within the banking system (it) seems to us to have much greater potential.”
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