Recent actions by the U.S. federal bank regulatory agencies create a decidedly proactive, risk-based approach with respect to the growth of cryptocurrency and other digital assets in the U.S. economy.
The Biden administration is calling on Congress to pass legislation that would strengthen government regulation of stablecoins, a form of cryptocurrency that has soared in popularity in the past year.
Recent national and international developments have once again highlighted the risks and rewards inherent to financial technologies. And regulators are taking notice of developments in the cryptocurrency space.
A little over one year ago, global central banks generally panned the launch of the Libra Association stablecoin sponsored by Facebook and other payment providers. But what a difference a year can make.
Major central banks have joined together to explore whether they should issue cryptocurrencies as the use of cash declines and more people turn to electronic forms of paying.
A decade that began with the banking industry in the midst of the financial crisis will close with the arrival of technology innovations that have transformed bank operations and consumer expectations.
Although Libra’s launch may be delayed indefinitely, it has nevertheless sparked a serious debate among central bankers, economic policymakers and lawmakers about the future role of stablecoins as an alternative to fiat currencies.
