Perianne Boring, founder and CEO of the Chamber of Digital Commerce, believes that stablecoins don’t pose financial stability risk.
Perianne Boring, founder and CEO of the Chamber of Digital Commerce, has told CNBC in a recent interview that she doesn’t think stablecoins pose financial stability risk.
Boring cited the recent speech by Michael Barr, a United States Federal Reserve Board vice chair for supervision, who stated that stablecoins need to come under the Fed supervision.
The CEO of the Chamber of Digital Commerce said Barr’s statement is overblown because of the current size of the global stablecoin market. She said;
“The total value of stablecoins worldwide today is about the size of a mid-sized regional bank. Stablecoins are not a financial stability risk.”
She pointed out that Barr’s speech was to send a message to Congress to pass legislation that is currently being prepared by the House Financial Service committee.
Boring added that the United States Federal Reserve needs to focus on monetary policies and leave legislative affairs to Congress.
She added that although there are calls for regulation of digital assets, it needs to be carried out in a transparent way.
When asked about her views on the current crypto winter and how the recent Fed’s policies are affecting the market, Boring said;
“Crypto is a volatile asset and has always been. It is important that we take a macro view of the market, including Wall Street, all risk assets, from equities to commodities, have seen large volatilities over the last couple of months. I do think there is a lot going on in our economy that is leading to volatility in the crypto market. I think Bitcoin is still a hedge against macro factors like inflation.”
Boring said Bitcoin is a largely misunderstood asset. She pointed out that for more than a decade, investors have been forced to navigate investing in cryptocurrencies alone.
She highlighted the fact that the Securities and Exchange Commission (SEC) has blocked all attempts to launch a Bitcoin exchange-traded fund (ETF), a move she believes has made it tough for some financial institutions to enter the cryptocurrency market.
According to Boring, the SEC’s denial of a Bitcoin ETF is one of the biggest conundrums in the industry.