Sign Up on MEXC
Highlights
- Federal Reserve minutes highlight stablecoins improving U.S. payment system efficiency.
- GENIUS Act accelerates stablecoins toward mainstream finance, raising systemic risk concerns.
- Stablecoins adoption grows as U.S. banks and China pursue strategic rollouts.
Stablecoins have become the new focus of attention by the Federal Reserve, major U.S. banks, and China. It indicates that they have gained substantial popularity in the global finance discussions.
Fed Recognizes the Efficiency of Stablecoins and Impact of GENIUS Act
The minutes of the Federal Open Market Committee’s (FOMC) latest meeting of the Federal Reserve have shown that the stablecoins have become a part of a formal policy discourse. Participants also analyzed the current developments regarding payment stablecoins and what it means to the financial system. The comments highlighted that these coins could improve the efficiency of payments while also creating new dynamics for Treasury markets and banking regulation.
The FOMC minutes underscored the Fed’s priority on fighting inflation and addressed the growing role of payment stablecoins. Participants said stablecoins could streamline transactions and reduce friction in the broader payment infrastructure.
Fed Warns of Stablecoins Threats to Treasury Markets and Banking
Besides the positives, members also raised certain concerns. As noticed by members, stablecoins can hugely boosting assets that strengthen their value, especially U.S. Treasury securities. Other respondents emphasized that there’s need to pay increasing attention to the role they play when it comes to systemic risks.
The minutes also raised concerns over the possible effects of these coins on the banking industry and financial stability. Maturity mismatches, roll-over risk, management of these coins’ reserves are some issues that continue to dominate debates.
This is one of the most direct recognitions of this digital asset category by Fed to date. The recent discussions of payment stablecoins in the FOMC is an indication of their increasing significance to the U.S. financial system. For crypto markets, the recognition represents another step toward institutional integration of blockchain-based money.
Nate Geraci, president of ETF Store, drew attention to the development on social media. He highlighted the Fed’s statement that “payment stablecoins could help improve the efficiency of the payment system.” His post underscored how serious policymakers are about the growing role of digital dollars in financial infrastructure.
U.S Banks and China Are Embracing Stablecoins As A Strategic Objective Reshaping Global Finance
Stablecoins are transforming the financial system, especially as banks and governments hasten their adoption. In the U.S., the OCC has allowed community banks to collaborate with Stablecoin issuers. Also, China is considering yuan-based stablecoins to increase the currency’s power and possibly rival the U.S. dollar.
This month, a roadmap will be reviewed by the State Council, with Hong Kong and Shanghai being in the first line of potential rollouts. This is a substantial policy reversal compared to the bans on crypto by Beijing in the past.
- Avalon Labs Burns A Massive 93.9 Million AVL Tokens As Part of ‘Buyback and Burn’ Plan
- SOL Strategies Begins Trading on Nasdaq With $94M in Solana Holdings
- Bitcoin, Crypto Market Rise as Court Halts Trump’s Bid to Oust Fed Gov Lisa Cook
- Grayscale Files Registration Statements for Litecoin, Hedera, and Bitcoin Cash ETFs
- SEC Delays Decision on Bitwise Dogecoin ETF Ahead First DOGE ETF Launch
- Meme Coin Price Prediction: Shiba Inu, Pepe Coin, Dogecoin, TRUMP
- HYPE Price Eye $88 the Next as Lion Group’s Treasury Shifts to Hyperliquid
- Ripple Ecosystem Growth Meets Technical Strength—Is XRP Price on the Verge of $10?
- Cardano Price Prediction as Sept Fed 50bps Cut Odds Surge – Is $1.65 Next?
- Chainlink Price Prediction: Analyst Sees 48% Rally as Grayscale ETF Filing Ignites Hype
