Federal Reserve Meeting Minutes: Stablecoins May Increase Demand for U.S. Treasuries

ChainCatcher news, according to the minutes from the Federal Reserve's July meeting, it was mentioned that many participants discussed recent and future developments related to payment stablecoins and their potential impact on the financial system. These participants pointed out that with the recent passage of the GENIUS Act (the U.S. Stablecoin Regulatory and National Innovation Act), the use of payment stablecoins may increase.

They stated that payment stablecoins help improve the efficiency of payment systems and also observed that such stablecoins could increase the demand for the underlying assets that support them (including U.S. Treasury securities).

In addition, the participants who expressed their opinions also worried that stablecoins could have broader implications for banks and the financial system, as well as for the implementation of monetary policy, and therefore warrant close monitoring, including the oversight of various assets used to back stablecoins.