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U.S. Federal Reserve Believes that Libra Could Become "New Medium Of Exchange"
Summary: The United States Federal Reserve announced that stablecoin projects in the vein of Facebook’s Libra could become a "new medium of exchange" if correctly designed and regulated. The Fed also stated that Libra like other global stablecoins “have the potential to rapidly achieve widespread adoption.” However, if incorrectly devised and unregulated, stablecoins could pose a ...
The United States Federal Reserve announced that stablecoin projects in the vein of Facebook’s Libra could become a "new medium of exchange" if correctly designed and regulated.
The Fed also stated that Libra like other global stablecoins “have the potential to rapidly achieve widespread adoption.” However, if incorrectly devised and unregulated, stablecoins could pose a threat to financial stability. For instance, the inability to convert stablecoins into domestic currency on demand or to settle payments on time. In the worst-case scenarios holders may be unable to liquidate their assets, leading to potentially serious consequences for economic activity, asset prices, or financial stability both domestically and internationally.
By Ramsey Baker
Tags: Facebook,Federal Reserve,Libra,Stablecoins
Link: U.S. Federal Reserve Believes that Libra Could Become "New Medium Of Exchange" [Copy]
