Federal Reserve's Barr: Stablecoins Need Regulation

ChainCatcher news, according to The Block, Federal Reserve official Michael Barr stated at a meeting that the Federal Reserve is very interested in ensuring that any stablecoin products are included in the federal regulatory framework.

Barr said that when an asset is pegged to government-issued currency and is used as a means of payment and a store of value, it borrows the trust of the central bank. "Therefore, the Federal Reserve is very interested in ensuring that any stablecoin products operate within an appropriate federal prudential regulatory framework so that they do not threaten financial stability or the integrity of the payment system."