FRB Governor Lael Brainard Highlights Challenges Posed By Global Stablecoin Networks

Federal Reserve Board Governor Lael Brainard described legal and regulatory challenges associated with increasingly fast rates of technology adoption and the growth in global stablecoin networks.

In a speech at the Monetary Policy, Technology and Globalisation Panel at a European Central Bank Colloquium, Ms. Brainard warned that global stablecoin networks like LIBRA could put consumers at risk if sufficient safeguards are not implemented. According to Ms. Brainard, stablecoin developers attempt to serve the same functions as "traditional money." Ms. Brainard reminded developers that payment systems "cannot be designed as they develop" like other technological applications, and that user rights and other safeguards must be incorporated.