American financial regulators have sat down with major stablecoin projects in an effort to better understand the industry.
The Commodity Futures Trading Commission’s Technology Advisory Committee held a public meeting on Feb. 26 to learn about stablecoins, cryptocurrency insurance, custody practices and cybersecurity.
Three stablecoin projects: JPM Coin, MarkerDao and Paxo were in attendance, discussing different aspects of stablecoins during the meeting.
The committee discussed various topics on stablecoins. The first was presented by Charles Cascarilla, CEO of Paxos, who spoke on the use cases of two of Paxos’ current stablecoin projects.
Another report was presented by Eddie Wen, Global Head of Digital Markets. He talked about the JPM Coin case and its currently under development of the project.
Referring to this topic, CFTC Commissioner Brian Quintenz said in his opening statement that JPM Coin is designed to be a digital representation of U.S. dollars held in designated accounts at JP Morgan Chase that can be used for instantaneous payment transfers on the blockchain between institutional JPM clients.
Steven Becker, President of the MakerDAO Foundation provided the last case study of stablecoin. He gave an overview of what decentralized finance or DeFi is like today.
Stablecoins have the potential to serve as liquid mediums of exchange
CFTC Commissioner Brian Quintenz has a positive outlook of stablecoins as liquid exchange mediums in the near future, to which he added that:
“In the furtherance of providing such correlated value, stablecoins have the potential, through tokenization, to function as viable, liquid mediums of exchange and serve as powerful enablers of smart contracts.”
Future outlook of stablecoins
Tomasso Mancini-Griffoli, Deputy Division Chief in the Monetary and Capital Markets Department of the IMF emphasized some of the public policy should take into consideration with stablecoins. These policies included financial stability, monetary policy control, privacy, competition, efficiency, consumer protection and financial integrity.
The U.S government has been looking to move into a digital dollar. As Cointelegraph previously reported, Christopher Giancarlo, the former chairman of the CFTC believes it's time for the Federal Reserve to issue a fully digital currency.