The Federal Reserve plans to require bank payment stablecoins to have $1 reserve support

The Federal Reserve plans to stipulate that payment stablecoins issued by banks must be backed by $1 approved reserve asset and typically redeemed within two working days. Reserve assets include US dollars, the balance of the Federal Reserve Bank, some bank deposits, US treasury bond bonds with a remaining maturity of no more than 93 days, qualified repurchase agreements and qualified investment funds. The issuer is required to make capital provisions for operational and credit risks, with a capital charge of 2% for the first $20 billion portion and 1% for the portion exceeding $50 billion. Member banks in recipient states may apply to establish subsidiaries to issue stablecoins, and the Federal Reserve must make a decision within 120 days. Federal Reserve Governor Michael Barr stated that stablecoins should be reliably and timely redeemed at face value in various market environments, and the public opinion solicitation period is 60 days after their publication in the Federal Register.