New York City

Are Stablecoins the Future of Payments: NY Federal Reserve Bank Says No!

08.02.2022 22:47
by Nina Petrov
1 min read

In yesterday’s paper, a research team from The Federal Reserve Bank of New York shared their doubts about the stablecoins as assets for the payment of the future.

The publication suggests the following: “Tying up safe and liquid assets in a stablecoin arrangement means they are not available for other uses, such as helping banks satisfy their regulatory requirements to maintain sufficient liquidity,”

Their belief is that the algorithms of stablecoins are too risky to handle payment systems.

As we could have expected, they strongly advertise centralized banking systems and only suggest that token deposits should stay an alternative. Their point of view on the matter is that stablecoin should be included in existing centralized economic infrastructures.

All of the US has been focusing on stablecoins in recent days, while the Federal Reserve is working on regulatory frameworks around stablecoins in the meantime.

Author

  • Nina Petrov is a theoretical mathematician, passionate about new trends in the global economy and blockchain technology. She is a devoted content creator and editor, crypto-enthusiast and stock market analyst.

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