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The Vice-Chair of the Federal Reserve Supervision Committee urges bank regulators to focus on cryptocurrency

A top administrative official at the Federal Reserve has urged bank regulators to give greater attention to cryptocurrencies and stablecoins. His statement came after a number of significant banks announced that they’ll be providing their customers products based on digital currencies, especially bitcoin.

Randal Quarles, the Federal Reserve’s vice chairman for supervision, spoke about cryptocurrencies at a press conference by the Options Clearing Corporation the week before. He encouraged bank authorities to give stablecoins and cryptocurrencies more consideration. 

On October 13, 2017, Quarles was appointed as Vice Chair for Supervision. In fact, he is the chairman of the Financial Stability Board (FSB). His remarks come after several American banks, including Morgan Stanley and Goldman Sachs, announced that they would give their rich clients cryptocurrency-based investment products, especially bitcoin. The emergence of cryptocurrencies and stablecoins, according to Quarles, has been one of the most fascinating trends in financial markets. 

He believes that a range of policy discussion around those topics hasn’t been giving the attention it deserves. He stressed that the inescapable march of technology is a major opportunity for the financial sector, but it also poses a supervisory challenge.

The top official at the Federal Reserve admitted that lawmakers were preoccupied with the Covid-19 pandemic crisis last year and didn’t have enough time to look into digital currency regulation. People have had quite a bunch of other things to care about over the last year while these subjects have grown in importance, he believes, and he recognizes why. He believes that over the next year or two, officials will give serious consideration to the issues posed by stablecoins.

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