The U.S. Federal Reserve is warning that the use of cryptocurrencies known as “stablecoins” could pave the way for crime, including money laundering and terrorism financing. Without proper regulation and controls, these virtual currencies can lead to financial instability as well as security issues, the Fed says. Facebook’s proposed push into the cryptocurrency market with Libra – a type of stablecoin – has raised new interest in the effect of these types of virtual currencies. The Chinese central bank has its own stablecoin offering in the works, and analysts are warning that it could have far-reaching effects.”]
Source: https://www.cuinfosecurity.com/federal-reserve-report-raises-concerns-about-stablecoins-a-13433