"Federal Reserve's Barr Urges Strong Regulation for Stablecoins and Considers Digital US Dollar"

Federal Reserve Vice Chair for Supervision, Michael Barr, has called for strong regulation of stablecoins, warning about the proliferation of private money backed by the U.S. dollar without oversight. Barr emphasized the need for federal regulation that allows the central bank to approve and supervise stablecoin issuers. Despite the growing popularity of stablecoins, Congress has been slow to pass legislation to regulate dollar-backed digital currencies. Barr urged Congress to act, highlighting the potential risks to financial stability. He also stated that the Federal Reserve is still in the research phase regarding central bank digital currencies (CBDCs) and has not yet made a decision on whether to pursue them.