Former U.S. Treasury Secretary believes stablecoins should be regulated and held in a regulated bank, here’s why
Steve Mnuchin, former Secretary of the US Treasury and now founder of the Liberty Strategic Capital private equity fund, spoke to Bloomberg TV and shared his take on Stables and Tether in particular.
Mnuchin’s fund likes payments via blockchain and stablecoins
While answering the questions of Bloomberg TV host David Westin, the former U.S. Treasury Secretary said that his new fund, Liberty Strategic Capital, is focused on technology—cybersecurity, national security, privacy, as well as fintech.
In particular, Mnuchin said that “we love the payment space”, when the host asked him to identify investment opportunities in this industry. He mentioned that the biggest opportunities in this area lie within real-time cross-border payments. And here Mnuchin skipped over to the topic of blockchain-based stablecoins.
Mnuchin reckons that stablecoins should most likely be regulated. They should be easily transferable, i.e. backed by real US dollars held in a secure depository bank.
Tether has 68 billion USDT in circulation, here’s Mnuchin’s comment
Mnuchin also shared his take on stablecoins, and Tether in particular. The Bloomberg TV host said that, according to a Bloomberg article published earlier today, Tether has more than $ 68 billion UST and $ 48 billion was issued in 2021, apparently doubting Tether could hold that much. money anywhere.
According to Mnuchin, stablecoins must not be “like casino chips.” People should always have the opportunity to exchange the dollar-backed stablecoins they hold for real U.S. dollars at any time. And those dollars that back the stablecoins must be held in a regulated bank, in a trust account.
The former U.S. Treasury secretary thinks that stablecoins should be invested in the U.S. Treasury or something “that looks like U.S. Treasuries”—i.e., money markets of highly liquidity-backed investments.
Stablecoins will be regulated as fiat payment platforms
As reported by U.Today earlier, global regulators such as the Bank for International Settlements and IOSCO security regulators believe that stablecoins like Tether should be regulated in the same way as financial payment providers. traditional – Western Union and PayPal.
However, this proposal will be discussed by the public before it gets finalized next year.
