Powell and Lagarde see positive aspects in the 'stablecoins', although they need more regulation

MADRID, 27 Sep. (EUROPA PRESS) -

The president of the European Central Bank (ECB), Christine Lagarde, and the president of the United States Federal Reserve (Fed), Jerome Powell, have highlighted that 'stablecoins' have certain positive aspects, although in any case they need more regulation as the rest of the crypto assets.

During his participation in an event organized by the Bank of France, Powell highlighted that the Fed has a "long history" of favoring "responsible innovation", including in the field of crypto assets. On his side, Lagarde has assessed that the 'stablecoins' are "possibly disruptive", although until now they only represent 10% of the entire crypto ecosystem.

In this sense, Powell has indicated that the ultimate goal of regulation is to create a level playing field, so that the benefits of innovation can be reaped while problems are avoided.

The US central banker has stressed that the Fed follows the principle of "same risk, same regulation". However, he has acknowledged that certain activities within the crypto ecosystem, such as smart contracts, do not bear a similar resemblance to any traditional financial activity.

In addition, Powell has recalled that 'stablecoins' are a form of private money, so their issuers are subject to financial panic and capital flight if vulnerabilities arise.

For her part, Lagarde has emphasized that the central bank has functioned as a monetary anchor for many decades. "If we don't get involved in experimenting and innovating in terms of central bank digital money, we risk losing the anchor role that we have embraced for many, many decades," he warned.

In this sense, Lagarde has recalled that it would not be desirable to go back to the banking of the 19th century and the beginning of the 20th century.