Zerohedge reported on Friday afternoon that Federal Reserve board member Leal Brainard said:
Only a third of the most popular exchanges require ID verification and proof of address to make a deposit or withdrawal. This is troubling, since a number of studies conclude that cryptocurrencies support a significant amount of illicit activity,” she told the audience.
One study estimated that more than a quarter of bitcoin users and roughly half of bitcoin transactions, for example, are associated with illegal activity.
The Bank of England also released their Financial Stability report where they said that stablecoins should be regulated like any other payment institution.
It’s clear that central banks are on the offensive at the moment as monetary policy in jeopardy with the rise of stablecoins. It will be hard to regulate stablecoins as they seem to be beyond the remit of central banks and it may need to be governments that make them against the law.
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