4E: Federal Reserve Board member warns of risks of Bitcoin-backed stablecoins; stablecoins may become the next round of crypto growth engine


On October 21st, according to 4E observations, Federal Reserve Board member Michael Barr warned that the newly passed GENIUS Act may allow stablecoins to use Bitcoin as a reserve asset, thereby weakening their stability. Barr pointed out that although the Act does not directly support Bitcoin reserves, any exchange medium adopted by foreign governments or considered a qualified asset could potentially make El Salvador's case a loophole.