Fed meeting minutes: Stablecoins may increase demand for US bonds and will pay close attention to related risks

PANews reported on August 21 that the Federal Reserve released its July meeting minutes, which mentioned that many participants discussed the near-term and future developments related to payment stablecoins and their possible impact on the financial system. These participants pointed out that with the recent passage of the GENIUS Act (the U.S. Stablecoin Guidance and National Innovation Act), the use of payment stablecoins may increase. They said payment stablecoins help improve the efficiency of payment systems, and also observed that such stablecoins could increase demand for the supporting assets behind them, including U.S. Treasury bonds. In addition, commented participants were concerned that stablecoins could have a broader impact on the banking and financial systems and monetary policy implementation, so it deserves close attention, including monitoring of the various types of assets used to support stablecoins.

Fed meeting minutes show that officials are paying close attention to stablecoin growth and its associated risks after the passage of the Genius Act.

According to zero hedging statistics on financial blogs, the number of times stablecoins mentioned in the minutes of this Federal Reserve meeting was 8 times.

Disclaimer: The views in this article only represent the author's personal views and do not constitute investment advice of this platform. This platform does not make any guarantees for the accuracy, completeness, originality and timeliness of article information, nor is it liable for any losses caused by the use or trust in article information.