Fed Official Says Stablecoins Could Transform Emerging Markets

At a Senate Banking Committee hearing, Susan Miran, acting head of the Federal Reserve’s Division of Financial Markets, described stablecoins as transformational for emerging markets. She highlighted stablecoins’ potential to streamline cross-border payments, boost financial inclusion, and lower remittance costs in developing economies. Miran noted the recent launch of FedNow and President Biden’s executive order on digital assets as steps toward a modern U.S. payments infrastructure. While praising the benefits of stablecoins, she stressed the need for robust regulation and clear oversight to mitigate risks, including financial instability, money laundering, and operational failures. The Fed official called for comprehensive legislation to define issuer responsibilities, ensure consumer protection, and support innovation. Industry stakeholders await new rules that could reshape the stablecoin landscape and influence the broader crypto ecosystem, particularly in emerging markets where digital payment solutions are in high demand.