The U.S. Fed Reserve said stablecoins might augment other payment systems as well as enhance conditions for consumers, but require continuous checks. This was revealed in the financial stability report for November. The report mentioned stablecoins, including their likely influence on the United States and other nations.

However, the report did not dismiss the phenomenon but looked into the likely use cases for the future. It maintained that any stablecoin must comply with regulatory demands due to the likely introduction of crucial challenges and risks.

The report lauded the Libra project of Facebook as it described it as a typical stablecoin that could speedily accomplish extensive adoption. However, it added that when a global stablecoin network is not well-designed and unregulated, it may present risks to financial stability.

The report is coming at a time when the Fed has become more interested in digital currency. A report by Cointelegraph some days ago said that the central bank is looking for someone to handle research on digital currencies while the Chinese government is preparing to introduce its digital currency.

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