NEWSU.S. Senator says stablecoins enable faster payments, financial inclusion BUT…

As cryptocurrencies are becoming more and more commonplace in the financial world, the demand for stablecoins has also risen significantly. And that is proved true as data shows the total supply of stablecoins has increased from $20B to more than $125B over the past year alone. Naturally, this has prompted interest from lawmakers, regulators as well US Senators.

Cynthia Lummis, a Republican Senator, and pro-crypto representative is the latest to raise red flags concerning this asset class. In a recent speech she spoke about her overall views on CBDCs and stablecoins. This speech comes ahead of the Federal Reserve’s report on the same.

Admitting the various benefits stablecoins have in the financial world, she said it enables faster payments between people and businesses than fiat dollar. She also said that the concept promotes financial inclusion and new market opportunities. However, she did add there are some “novel” risks they pose to the economy as a whole.