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Fed council warns stablecoins may pose risk to bank deposits and credit capacity – TON BOT

Fed council warns stablecoins may pose risk to bank deposits and credit capacity

Members of the Federal Reserve’s CDIAC expressed concerns about nonbank-issued stablecoins potentially leading to deposit outflows from traditional banks and reduced credit availability in local communities. They compared this threat to the past exodus of funds to money market mutual funds. They called for supervision of stablecoins to address risks and ensure consistent oversight. Fed Chair Jerome Powell also emphasized the need for regulation of stablecoins.


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