The central bank outlined two tracks focused on payment stablecoins: how they are backed and who can offer them. If adopted, one proposal would make certain issuers match outstanding tokens with permissible reserve assets, including short term Treasury bills and other high quality, liquid holdings. It would also set capital requirements that address specific credit and operational risks in payment stablecoin activities.
The companion proposal would create a defined application path for banks that want to issue stablecoins. Applicants would need to provide materials such as a business plan, financial information, and other documentation the Fed requests.
The Fed's proposals now head into a 60 day comment period.
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Clearer rules for digital dollars could reduce the "what if" risk around stablecoins. If full reserve backing and a formal bank application lane take hold, you could see fewer questions about how these tokens are supported and more potential for them to show up in everyday banking. Translation: the way you move cash and stash short term funds might evolve if your bank can safely offer a stablecoin-like option under these rules.
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