Federal Reserve Chair Jerome Powell said new
forms of digital money such as cryptocurrencies
and stablecoins present risks to the U.S.
financial system and will require new rules to
protect consumers.
Powell, speaking Wednesday on a panel
organized by the Bank for International
Settlements, a global organization of central
bankers, also said that new technologies will
likely make electronic payments cheaper and
faster. But they could also destabilize existing
financial institutions, he said.
“Our existing regulatory frameworks were
not built with a digital world in mind,” he said.
“Stablecoins, central bank digital currencies,
and digital finance more generally, will require