US financial regulators have sat down with large stablecoin projects in an effort to better understand the industry.
The Technology Advisory Committee of the Commodity Futures Trading Commission held a public meeting on February 26 for more information on stable coins, cryptocurrency insurance, custody methods and cyber security.
Three stablecoin projects: JPM Coin, Markeratri and Paxo were present and discussed various aspects of stablecoins during the meeting.
The committee has discussed various topics about stable currencies. The first was presented by Charles Cascarilla, CEO of Paxos, who spoke about the use cases of two of Paxos’ current stablecoin projects.
Another report was presented by Eddie Wen, Global Head of Digital Markets. He spoke about the JPM Coin case, which is currently under development for the project.
Referring to this issue, CFTC commissioner Brian Quintenz said in his opening statement that JPM Coin is designed as a digital representation of US dollars held in designated accounts at JP Morgan Chase that can be used for immediate payment transfers on the blockchain between institutional JPM customers .
Steven Becker, chairman of the Maker DAO Foundation, delivered the latest case study from stablecoin. He gave an overview of how decentralized financing or DeFi is today.
CFTC commissioner Brian Quintenz has a positive outlook on stable currencies as liquid exchange mediums in the near future, to which he adds:
“To promote the delivery of such correlated value, stable currencies have the potential to function through tokenization as viable, liquid means of exchange and as a powerful incentive for smart contracts.”
Tomasso Mancini-Griffoli, Deputy Head of the Monetary and Capital Markets Department of the IMF, emphasized that part of government policy should take stablecoins into account. This policy included financial stability, monetary policy, privacy, competition, efficiency, consumer protection and financial integrity.
The US government has been looking for a digital dollar. Christopher Giancarlo, the former president of the CFTC believes it is time for the Federal Reserve to issue a fully digital currency.
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