The United States Federal Reserve believes that stablecoins “could complement existing payment systems and improve consumer welfare” but the operators behind the digital assets will require constant oversight and regulation. The Fed warned that if a stablecoin payment network achieves a global scale quickly, it will increase risks related to financial stability and monetary policy.
Interestingly, with all the regulations and monetary policy initiatives of the Fed, the total debt of the US has hit $23 trillion. It is not only the US that is burdened by debt. Global debt will reach a staggerring $255 trillion by the end of this year. This massive growth in debt is unsustainable and is certain to result in a major financial crisis in the future. Possibly, the next crisis might usher a change from fiat to cryptocurrencies.