Stablecoin risks raise need for CBDC research – Brainard

ECB’s Panetta says “stablecoins are not money”, as Brainard weighs CBDC as possible alternative

Lael Brainard
Lael Brainard

The risks associated with the growing use of stablecoins could be one reason to develop a central bank digital currency (CBDC), say top officials from the European Central Bank and Federal Reserve.

“Think of it as renovating a creaky, ageing financial system, not creating something entirely new,” Fed governor Lael Brainard told the US Monetary Policy Forum on February 18.

“Rapid growth in the use of stablecoins and the potential for those stablecoins to become widely used for payments, not

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