Stablecoins ‘threaten financial stability’; China’s commodities boom crackdown; Liberty steelworks for sale – as it happened
Rolling coverage of the latest economic and financial news
- Bank of England governor: Greensill acts like he’s discovered secret of universe
- Lael Brainard warns of rise of private money
- Brainard: Stablecoins don’t provide same protection as bank deposits
- Says Federal Reserve is stepping up work on digital dollar
Earlier;
- Liberty Steel outlines major restructuring
- HSBC has no plans to offer bitcoin to clients
- China warns against commodities speculation and hoarding
- Britain’s electric car charging network to get £300m boost
Time for a quick recap.
A Federal Reserve governor has warned that stablecoins could be a risk to consumers, and financial stability. Lael Brainard said that the rise of ‘private money’ was a concern, as the Fed also steps up its work on a possible digital dollar.
Unlike central bank fiat currencies, stablecoins do not have legal tender status. Depending on underlying arrangements, some may expose consumers and businesses to risk. If widely adopted, stablecoins could serve as the basis of an alternative payments system oriented around new private forms of money.
Given the network externalities associated with achieving scale in payments, there is a risk that the widespread use of private monies for consumer payments could fragment parts of the U.S. payment system in ways that impose burdens and raise costs for households and businesses.
Related: Liberty Steel plans to sell Yorkshire plant to stay afloat
Related: Chinese commodity prices fall as authorities warn of ‘excessive speculation’
Related: Cinemas in UK greet reopening success driven by Peter Rabbit 2
European Closing Bell
FTSE 100 +0.53% at 7,056
STOXX 50 +0.65% at 4,026
CAC 40 +0.34% at 6,408
IBEX 35 +0.09% at 9,212
MIB -0.40% at 24,875
~ @Newsquawk
Related: Britain’s electric car charging network boosted by £300m funding
Related: EY staff to work from home at least two days a week after lockdown eased
Related: Eight men arrested over Royal Mail delivery scam texts
Related: How retirement villages are becoming part of high street life in the UK
Related: Influential investor joins shareholder rebellion over Shell’s climate plan
Oil has also pushed higher, with Brent crude up over 3% at $68.50 per barrel.
Uncertainty over the US-Iran nuclear talks seemed to lift crude prices this morning, but the rally also reflects optimism about the recovery from the pandemic.
