U.S. Treasury panel eyes tokenization for debt, calls for central oversight

The U.S. Treasury Borrowing Advisory Committee's new report sees promise in tokenizing U.S. Treasuries for benefits like instant settlement and lower risk. According to CoinDesk, the committee, including financial giants like Citigroup and Goldman Sachs, suggests a cautious rollout led by a central authority on a permissioned blockchain. It also warns of potential risks from stablecoins, particularly Tether, and suggests that future regulations may require stablecoins to operate similarly to money market funds. The committee notes CBDCs might eventually replace stablecoins as the main digital currency.