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.