Federal Reserve Board Member Barr warns that stablecoins pose money laundering and financial stability risks

Deep Tide TechFlow message. April 01, according to Bloomberg, Federal Reserve Governor Michael Barr, in a prepared remarks at the Federalist Society, warned that stablecoins pose risks in potential money laundering and financial stability. Barr said that the quality and liquidity of stablecoin reserve assets are crucial to their long-term viability, but issuers may have incentives to maximize returns on reserve assets by expanding their risk exposure. At present, relevant banking regulators are actively advancing the drafting of stablecoin regulatory rules.

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