Chamber of Digital Commerce founder and CEO Perian Boring believes stablecoins do not pose a risk to financial stability.
Chamber of Digital Commerce founder and CEO Perian Boring told CNBC In a recent interview he said that he does not think stablecoins pose financial stability risk.
Boring cited a recent speech by Michael Barr, the deputy chairman of the United States Federal Reserve Board for Supervision, who said stablecoins need to come under Fed supervision.
The CEO of the Chamber of Digital Commerce said that Barr’s statement is exaggerated due to the current size of the global stablecoin market. He said;
“Today the total value of stablecoins worldwide is about the size of a medium-sized regional bank. Stablecoins are not a financial stability risk.”
She explained that Barr’s speech was meant to send a message to Congress to pass legislation that is currently being prepared by the House Financial Service Committee.
Boring said the United States Federal Reserve needs to focus on monetary policies and leave legislative matters to Congress.
He said that although there is a demand for regulation of digital assets, it needs to be done in a transparent manner.
When asked about his thoughts on the current crypto winter and how recent Fed policies are affecting the market, Boring said;
“Crypto is and always has been a volatile asset. It is important that we take a macro view of the market, including Wall Street, the past few months have seen great volatility in all risk assets, from equities to commodities. I think There is a lot going on in our economy that is causing volatility in the crypto market. I think bitcoin is still a hedge against macro factors like inflation.”
Boring said that bitcoin is a largely misunderstood asset. She pointed out that for over a decade, investors have been forced to invest in cryptocurrencies alone.
He highlighted the fact that the Securities and Exchange Commission (SEC) has blocked all attempts to launch bitcoin exchange-traded funds (ETFs), he believes, for some financial institutions in the cryptocurrency market. Access has become difficult.
According to Boring, the denial of bitcoin ETFs by the SEC is one of the biggest problems facing the industry.