{"id":284786,"date":"2021-06-26T20:00:36","date_gmt":"2021-06-26T17:00:36","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/federal-reserve-official-stablecoin-growth-is-exponential-deserves-attention\/"},"modified":"2021-06-26T20:00:36","modified_gmt":"2021-06-26T17:00:36","slug":"federal-reserve-official-stablecoin-growth-is-exponential-deserves-attention","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/federal-reserve-official-stablecoin-growth-is-exponential-deserves-attention\/","title":{"rendered":"# Federal Reserve official: Stablecoin growth is ‘exponential,’ deserves ‘attention’"},"content":{"rendered":"

“# Federal Reserve official: Stablecoin growth is ‘exponential,’ deserves ‘attention’ <\/strong>”<\/p>\n

While a presentation yesterday from Boston Federal Reserve President Eric Rosengren has some members of cryptoTwitter<\/a> spooked at the idea of regulation and oversight, the central bank might simply be pondering the future.\u00a0<\/p>\n

In a presentation titled \u201cFinancial Stability,\u201d Rosengren identified the stablecoin Tether by name as a part of three different \u201cFinancial Stability Challenges.\u201d The challenges included risks to the housing market, the need for emergency lending facilities in times of crises, and \u201cperiodic disruptions to short-term credit markets,\u201d where Tether was noted as one possible disruptor. <\/p>\n

A follow-up slide noted that stablecoins are rapidly growing in marketcap, and now are roughly 20% the size of the total AUM for prime money market mutual funds: <\/p>\n

Source: bostonfed.org<\/figcaption><\/figure>\n

\u201cThe reason we should be a bit concerned about stablecoin is that its growing very rapidly so there’s exponential growth in stablecoin,\u201d Rosengren said in an interview with Yahoo Finance. \u201c[…] I do think we need to think more broadly about what could disrupt short term credit markets over time, and certainly stablecoins are one element.\u201d<\/p>\n

RELATED:\u00a0Tether mints more coins to break $60 billion market cap<\/strong><\/p>\n

While Avanti Financial group CEO Caitlin Long rang the alarm bells that this could be a harbinger of the Federal Reserve laying the groundwork for a regulatory framework for stablecoins, Rosengren ultimately seemed to be taking a more tempered view. <\/p>\n

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3\/ And here’s part 2. <\/p>\n

Again, every single USD ultimately clears thru the Fed, which means the Fed has jurisdiction over USD #stablecoins<\/a>. It matters that the Fed is saying this. Caveat emptor, folks. pic.twitter.com\/iWkO7AoUpn<\/a><\/p>\n

\u2014 Caitlin Long (@CaitlinLong_) June 25, 2021<\/a><\/p><\/blockquote>\n