Federal Reserves chairman Jerome Powell wants strict legislation to be imposed on stablecoins similar to that applied to money market funds or bank savings.
The statement was tabled with the Dewan Rakyat today.
He explained: "This economic activity is the same as bank savings and money market funds, and should be subject to equivalent laws."
Because of that, if stablecoin is to be made part of the payments sector, it means that there must be a law imposed as there is currently no framework for the asset.
Powell also believes it is highly impossible to see crypto assets used as a payment medium in the future because of their overly volatile and risky nature.
At the same time, the topic of CBDC was also touched on by Powell where he told that the development of the digital dollar would immediately eliminate the need for stablecoin or cryptocurrency:
"We don't need stablecoins or cryptocurrencies if the central bank's digital currency, the digital dollar is developed."
As a result, Powell announced that a report on the benefits and risks of CBDC in the United States (US) will be released this September.
