Although Yellen said that what was seen with these stablecoins does not compromise the local economy, the official did not rule out that they could eventually represent a risk, so she stressed the need for federal legislation to address a place where cryptocurrency can be sent to and from, in the form of a string of letters and numbers. these and other assets.
The secretary of the U.S. Treasury, Janet Yellen, indicated that the fall seen in the stablecoins market, referring specifically to what happened with UST de Earth and to the slight drop seen in the price ofTether, does not represent a threat to the financial stability of the North American nation.
Yellen speaks out on stablecoins
Yellen’s remarks came during a hearing before the U.S. House of Representatives. Chamber Financial Services Committee held today. There, the Treasury official highlighted that the market an area or arena, online or offline, in which commercial dealings are conducted. for UST was not of such a size that its fall would noticeably affect the nation’s finances, something that would not be happening either with the reduction seen in the price of USDT, this on the basis of the findings presented in a report published in November by the Chairman’s Working Group on Financial Markets.
However, although she is not concerned about what she saw, Yellen did not rule out that the cryptocurrency cryptocurrencies are digital currencies that use cryptographic technologies to secure their operation. market and its accelerated growth could compromise US financial stability, so she commented:
“[Los activos digitales] están creciendo muy rápidamente. Presentan el mismo tipo de riesgo que conocemos desde hace siglos en relación con las corridas bancarias”.
“We just had this last week with Terra and with Tether an illustration of the risks associated with stable coins…there can be runs…We invented a good regulatory framework to deal with this, and it’s a federally insured depository institution.”
The need for a CBDC
The official took advantage of the space to refer again to the need for a digital digital technologies are these electronic tools that have the ability to generate, store or even process data. dollar backed by the Federal Reserve digital currency currency is a medium of exchange that defines value. that could be defined as a CBDC, which could have a positive impact on financial intermediation.
In this regard, Yellen commented that its usefulness and benefits would be greater than the risks it would entail, taking into account an account is essentially a whose purpose is to track the financial activities of a specific asset/ that its operation would be similar to some extent to that of the known stablecoins but with other guarantees.
While acknowledging the benefits, Yellen again called on lawmakers to devise a consistent federal framework that addresses these and other digital assets, precisely because of the remarkable trading volumes and interest expressed by many U.S. investors.
- Terra’s Blockchain a distributed ledger system. A sequence of blocks, or units of digital information, stored consecutively in a public database. The basis for cryptocurrencies. halts to avoid a governance in the world of cryptocurrencies, governance is defined as the people or organizations that have decision-making powers regarding the project. attack, LUNA drops 99%.
- Terra announces new emergency measures to rescue LUNA and UST
- BlackRock and Citadel reject conspiracy theories, deny being behind UST collapse
- Tether disengages and Bitcoin the biggest and most popular cryptocurrency in the world. It is a decentralized digital currency that enables users to make trustless peer-to-peer transactions. drops below USD $29,000 amid market plunge
Version by Angel Di Matteo / DiarioBitcoin
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