The technology advisory committee of the CFTC sat down on Feb 26 in efforts to better understand stablecoins, custodial practises crypto-insurance and cybersecurity. During the meeting, three stablecoin projects were in attendance. Namely, Paxo, JPM Coin and MarkerDAO. In discussion were the different aspects of stablecoins. Paxos CEO Charles Cascarilla made the first presentation, touching on the use cases of Paxos current stablecoin project. In fact, the company has two projects in line with stablecoins.
CFTC: JPM Coin is a digital Dollar
Furthermore, Global Head of Digital Markets Eddie Wen touched on the JPM Coin and what is currently under development. Adding to this topic Brian Quintez, the CFTC Commissioner described the JPM Coin as a digital representation of the United States Dollar.
However, one that is is held in different designated accounts of the JP Morgan Chase. Clients of the firm can use the amounts for instantaneous payment transfers between each other on the blockchain.
MakerDAO President, Steven Becker scrutinized the final case study of stablecoins. Giving an overview of how decentralized finance is like today. Meanwhile, Brian Quintenz gave a positive outlook for stablecoins as mediums of liquid exchange in the near future. He stated:
“In the furtherance of providing such correlated value, stablecoins have the potential, through tokenization, to function as viable, liquid mediums of exchange and serve as powerful enablers of smart contracts.”
The Deputy Division Chief of the Monetary and Capital Markets Department, Tomasso Mancini Griffoli emphasized the need for public policy to take financial stability as a key consideration with stablecoins. He said other important policies with stablecoins as monetary policy control, efficiency, financial integrity, and consumer protection. Competition and privacy.
Meanwhile, the US government is looking into ways of creating a digital dollar. Ex CFTC chairman Christopher Giancarlo earlier on noted that it was about time the federal reserve issued a digital dollar.