investment bank ’ s announcement at www. eib. org / investor _ relations / press / 2018 / fi - 2018 - 12eib % 20issues % 20markets % 20first % 20sonia % 20gbp % 20benchmark % 20with % 20gbp % 201bn % 205y % 20issua nce. htm. apart from the questions as to whether libor will continue or whether iba or the fca may judge that it is not representative, market participants should consider whether a rate with so few transactions underlying it is really their best option. do we really need or want to use other tenors of libor in municipal or financial floating - rate notes? for some, the answer to this may still be yes, but it is then imperative that they work to incorporate safer fallback language into their contracts as quickly as they can. this is something that the arrc has been working on intensively this year and much of today ’ s roundtable will discuss. but for others, the safest thing you can do would be to move away from using libor. regardless of your answer to this question, we all have a stake in the arrc ’ s work, both in promoting sofr and in promoting better contract language. i want to thank you all for coming to this roundtable, and want to thank sandie and the arrc for all the work that has made it possible. median daily number of unsecured wholesale borrowing transactions observed for u. s. dollar libor panel banks 2017 - q1 2017 - q2 1 - month libor 2017 - q3 3 - month libor 2017 - q4 6 - month libor 2018 - q1 2018 - q2 1 - year libor note : chart key describes bars in order from left to right for each quarter. transactions are aggregated across all available fed funds, eurodollar, certificates of deposit, and unsecured commercial paper transactions of the 16 banks currently submitting to u. s. dollar libor. transactions above $ 10 million with tenors between 25 and 35 days ( for one month ), 80 and 100 calendar days ( three month ), 150 to 210 calendar days ( six month ), or 330 and 390 days ( one year ) are included for each maturity, excluding any transactions more than 25 basis points above or below the day's libor rate ( excluding days on which the fomc altered its monetary policy targets

. s. dollar. when an asset is pegged to a government - issued currency, it is a form of private money. when that asset is also used as a means of payment and a store of value, it borrows the trust of the central bank. so, the federal reserve has a strong interest in ensuring that any stablecoin offerings operate within an appropriate federal prudential oversight framework, so they do not threaten financial stability or payments system integrity. to provide clarity for banks interested in engaging with these assets, we recently issued guidance on the process by which a fed - supervised bank can seek to obtain a supervisory non - objection before issuing, holding, or transacting in " dollar tokens. " 2 as the board of governors announced in january, before those banks engage in these activities, they are advised to obtain a written supervisory non - objection from the fed verifying that they have appropriate risk management and systems in place to identify and control potential risks, such as those related to cybersecurity and compliance with anti - money - laundering laws. 3 the guidance only covers the activities of the banks over which we have supervisory authority. but there are big risks when the federal reserve does not have direct supervisory and regulatory authority. i remain deeply concerned about stablecoin issuance without strong federal oversight. as i mentioned earlier, stablecoins are a form of money, and the ultimate source of credibility in money is the central bank. if nonfederally regulated stablecoins were to become a widespread means of payment and store of value, they could pose significant risks to financial stability, monetary policy, and the u. s. payments system. it is important to get the legislative and regulatory framework right before significant risks emerge. we appreciate the work congress has been doing on this important issue and look forward to further engagement to ensure that there is a robust federal framework for all stablecoins. as everyone in this room knows, innovation never stops. we are continuing to explore new technologies so we can continue to support a robust payments system that meets 3 / 4 bis - central bankers'speeches the needs of the public. we are committed to supporting responsible innovation, both through our provision of payments rails and through timely and relevant supervisory feedback to the institutions we supervise. looking ahead, we will continue to engage in exploring new technologies, including those that could be used to further advance our provision of payments rails. as i mentioned, this work involves continuing to study the next generation of ledger technology