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MLB Team Washington Nationals Partners With Terra Blockchain Community, Ballpark Plans to Accept UST

On February 9, the American professional baseball team based in Washington, D.C., the Washington Nationals, announced the team has partnered with Terra, the open-source blockchain platform and decentralized autonomous organization (DAO). The Washington Nationals detail that the team is a “leading innovator” and is “consistently introducing new technologies to enhance the fan experience.” Washington Nationals Ink Long-Term Deal With Terra Major League Baseball (MLB) team the Washington Nationals has partnered with the blockchain platform and DAO Terra, according to an announcement published by the team on Wednesday. The deal with Terra follows a slew of sports-related deals with crypto firms, but the MLB team will be the first to partner with an open-source blockchain project. In addition to the partnership, the algorithmic stablecoin UST that’s issued on the Terra blockchain will be “accepted as a payment method at Nationals Park as early as next season.” “The Nationals continue t...
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Fed and Yale researchers lay out 2 regulatory frameworks for stablecoins

Yale Professor Gary B. Gorton and Jeffery Zhang of the Board of Governors of the Federal Reserve System have co-authored a 49-page paper called, “Taming Wildcat Stablecoins.”

The Federal Reserve’s ongoing research into central bank digital currencies, or CBDCs, has broadened to include stablecoins and whether they can be effectively regulated. 

In their paper, which was published in SSRN’s eLibrary on July 17, Gorton and Zhang argue that “privately produced monies” such as stablecoins are “not an effective medium of exchange because they are not always accepted at par and are subject to runs.” The authors then go on to propose solutions to address what they consider to be “systemic risks created by stablecoins.”

After taking a deep dive into the history of private money, beginning with the Free Banking Era in the United States, a period from 1837 to 1864,  the researchers concluded that policymakers have two choices with respect to regulating stablecoins: make stablecoins equivalent to public money or introduce a CBDC, which entails taxing private stablecoins out of existence.

With respect to the first choice, the government could require that stablecoins be issued through FDIC-insured banks or stipulate that all stablecoins be fully collateralized by Treasuries at the Federal Reserve.

The paper made its way through Twitter on Sunday, with Avanti founder Caitlin Long making an interesting connection between the publication date and an upcoming stablecoin working group led by Treasury Secretary Janet Yellen.

Beginning July 19, Yellen will convene the President’s Working Group on Financial Markets to Discuss Stablecoins. The group brings together various regulators to assess the potential benefits and risks of stablecoins.

The discussion around stablecoins has ramped up recently, with Fed Chair Jerome Powell calling for stricter regulations of assets like Tether (USDT). In testimony before the House of Representatives on July 14, Powell said cryptocurrencies are unlikely to join the payment universe anytime soon due to their extreme price volatility.

Related: China’s central bank says crypto gave impetus to the creation of its CBDC

To date, Fed researchers have been more open to the idea of a CBDC, though unlike their counterparts in Asia and Europe, the United States has no immediate plans for a so-called digital dollar. Despite its hostile attitude towards Bitcoin (BTC), China has emerged as one of the front-runners to issue a centrally-controlled digital currency.

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