Digital financial assets require appropriate regulations to ensure a level playing field and protect consumers, Federal Reserve Chair Jerome Powell said Tuesday.
“Within the decentralized financial ecosystem, there are very significant structural issues around the lack of transparency,” Powell said during a panel discussion on digital finance hosted by the Bank of France.
“We need to be very careful about how cryptocurrency activities are carried out within the regulatory perimeter. There is a real need for proper regulation so that as decentralized finance expands and begins to reach more and more consumers, proper regulation is in place. They need ‘same risk, same regulation’ wherever they occur.”
He added that while stablecoins, a crypto asset that attempts to peg its value to a conventional currency such as the dollar, are quite different from unbacked cryptocurrencies, they also require careful monitoring.
“If you’re going to have private money creation across the country, there really needs to be a federal role… we think it really should be the Fed that plays that role. That’s our main focus right now,” said Powell.
Source: CNN Brasil
Joe Jameson, a technology journalist with over 2 years of experience, writes for top online news websites. Specializing in the field of technology, Joe provides insights into the latest advancements in the industry. Currently, he contributes to covering the world stock market.
