Media: US FDIC may extend $250,000 insurance coverage to stabelcoin deposits

Media: US FDIC may extend $250,000 insurance coverage to stabelcoin deposits

The FDIC's list of $250,000 pass-through insurance coverage may include certain steiblocoins. This has been disclosed to CoinDesk by knowledgeable sources.

Discussions are tentative and no timeline has been set.

The agency is also exploring the option of directly insuring deposits at the banks issuing the stabelcoins.

"The FDIC is integrating stablecoins into the banking system. If the collateral is a reserve at the Fed, the argument that it is a deposit could work. If in the form of US government bonds, such an interpretation would prove difficult," one source explained.

Currently, pass-through insurance coverage applies to fiat deposits of Bitcoin exchange customers, but is not provided for Stablecoin.

One interlocutor drew attention to the potential difficulties in providing insurance coverage for token holders because of the need to monitor their transactions on public blockchains. Another pointed out that the FDIC's objective is not to expose the deposit insurance fund to unnecessary risks.

Sources have not ruled out that the agency will seek public comment before a possible policy change.

According to the media, US President Joe Biden's administration is considering the option of imposing the same requirements on issuers of stable coins as those applying to banks. It is possible that they would need to comply with the provisions of a specially drafted statute.

In September it became known about plans of the US Ministry of Finance to oblige issuers of stablcoins to ensure their free conversion into fiat. Earlier representatives of the department discussed with representatives of the banking community and credit unions the risks and benefits of stable coins.

In July a meeting of the Working Group on Financial Markets under the President of the United States was held. Its participants discussed the rapid growth of stablcoins, their use as a means of payment, as well as the potential risks to end users, the financial system and national security.

Gary Gensler called stablocoins "poker chips for casinos in the Wild West", and the US Senate said there was a need for full cash for these digital assets.

Recall, according to Fed chief Jerome Powell, the agency does not intend to ban cryptocurrencies, but plans to include stablcoins in the legal framework.

In August, the USDC issuing consortium Centre announced its intention to convert the token's reserves into dollars and treasury bills.

Stablecoin issuer USDT Tether Limited indicated in a July report that the proportion of cash and bank deposits that could be withdrawn in two days or less was around 10%.

Paxos, the company behind Pax Dollar (formerly Paxos Standard), confirmed 100% collateralisation of each USDP and BUSD issue with USD and its equivalents.

Like any investment, it may be a good idea to start small to learn the mechanics of buying cryptocurrencies. Absolut Global Markets exchanges comparison.

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