«…achieving benefits while marginalizing the volatility of some of its predecessors. Stablecoins, which may be issued by a central entity, deliver price stability by having their value pegged to another asset, like commercial bank deposits or government- issued bonds”. Chair Mike Crapo (R-ID)
On June 30, the U. S. Senate Banking Committee held a hearing that covered a whole host of policy topics on the digitization of money and payments. In what was described as a move closer to the U. S. Digital Dollar, the hearing also covered a broad swathe of issues that impact the crypto and blockchain space.
Chairman Mike Crapo (R-UT) of the Senate Banking Committee described how Covid-19 has forced Americans to go all-digital at a rapid pace. According to Crapo, his Committee was keen to learn more about new technologies that could replace our current payments system, understand who the new players are, and determine any regulatory policies as well as what the role of the U. S. Government should take in creating its own central bank digital currency.
In his opening remarks, Crapo explored the long-standing promise of cryptocurrencies to provide faster, cheaper global payments with a degree of anonymity. Crapo introduced his colleagues to stablecoins as, “…a new type of cryptocurrency [that] has emerged aimed at achieving these benefits while marginalizing the volatility of some of its predecessors. Stablecoins, which may be issued by a central entity, deliver price stability by having their value pegged to another asset, like commercial bank deposits or government- issued bonds”.
