Fed's Williams: potential for stablecoins to be "very useful"

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John Williams, chief executive officer of the Federal Reserve Bank of New York, speaks at an event in New York, U.S., November 6, 2019. REUTERS/Carlo Allegri/File Photo

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March 22 (Reuters) - A form of digital currency that is designed to have a stable price and is generally linked to a mainstream currency or something such as gold could prove beneficial if properly regulated, New York Federal Reserve Bank President John Williams said on Tuesday.

"I see there is a potential for stablecoins to serve a very useful purpose both in cross border payments...I also see this technology could be used for wholesale payments in general as well," Williams said while appearing at a digital panel discussion on digital currencies organized by the Bank for International Settlements.

He added they would have to be properly regulated to ensure consumer and investor protection. Asked about other types of cryptocurrencies, Williams said they "have some fundamental flaws."

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Reporting by Lindsay Dunsmuir; Editing by

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