Fun

Fed Chair Jerome Powell Says ‘You Wouldn’t Need Cryptocurrencies if You Had a Digital US Currency’

News Feed - 2021-07-16 12:07:02

Fed Chair Jerome Powell Says "You Wouldn’t Need Cryptocurrencies if You Had a Digital US Currency"


Federal Reserve Chairman Jerome Powell believes that there is no need for cryptocurrencies if there is a digital dollar. “I think that’s one of the stronger arguments in its favor,” he said. The Fed chair also insists that the U.S. is not in danger of losing its reserve currency status. Fed Chair Powell Thinks Cryptocurrencies Aren’t Needed When There Is Digital Dollar


Federal Reserve Chairman Jerome Powell talked about cryptocurrencies, stablecoins, and a digital dollar during a congressional hearing before the U.S. House of Representatives Financial Services Committee Wednesday.


During the hearing, Rep. Stephen Lynch from Massachusetts asked if a “swift action” on the Fed’s digital currency would “calm” the markets and whether a digital dollar would be a more viable alternative than having thousands of cryptocurrencies or stablecoins emerge in the payments system.


“I think that may be the case. I think that’s one of the arguments that are offered in favor of digital currency,” Powell replied, elaborating: In particular, you wouldn’t need stablecoins, you wouldn’t need cryptocurrencies if you had a digital U.S. currency. I think that’s one of the stronger arguments in its favor.


Responding to a different question, Powell noted that stablecoins are a lot like money market funds or bank deposits “but without the regulation.” He opined: “We have a tradition in this country where the public’s money is held in what is supposed to be a very safe asset. We have a pretty strong regulatory framework around bank deposits, for example, or money market funds. That doesn’t exist really for stablecoins.”


Rep. Lynch also raised concerns about the “slowness” of digital dollar development citing that many central banks worldwide are progressing faster than the U.S. in this area.


Powell replied: “I think this is the beginning of an accelerating decision process. We have a lot of work left to do on the technical side and on the policy side, but a critical part of it is just public consultation.” He emphasized: “I’m really concerned about getting this right … I think it’s way more important to get it right than it is to get it fast.”


The Fed chairman also addressed Lynch’s concerns about the U.S. losing its reserve currency status. “On reserve currency, the U.S. is the reserve currency,” Powell insisted: There really isn’t a good competitor out there. All the things you need to be a reserve currency, the United States has it … We are not in danger of losing it, certainly not to China.


What do you think about the comments by Fed Chairman Jerome Powell? Let us know in the comments section below. Italian Regulator Warns Binance Crypto Exchange Not Authorized to Provide Investment Services in Italy REGULATION | 10 hours ago France Proposes EU-Wide Cryptocurrency Regulation REGULATION | 21 hours ago Tags in this story CBDC, central bank digital currency, Cryptocurrencies, Digital Dollar, Fed Chair, Fed Chairman, fed digital dollar, Jay Powell, jerome powell, reserve currency, Stablecoins


Image Credits: Shutterstock, Pixabay, Wiki Commons Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article. Read disclaimerShow comments

News Feed

Hong Kong’s Largest Virtual Bank Offers Crypto Conversion Services
Hong Kong’s Largest Virtual Bank Offers Crypto Conversion Services ZA Bank, Hong Kong’s biggest virtual-only lender, intends to expand its business into the region’s growing
Bitcoin sees 3% correction as GBTC investors dump nearly $600M
Jesse Coghlan5 hours agoBitcoin sees 3% correction as GBTC investors dump nearly $600MThe price of Bitcoin stumbled amid a big day of Grayscale’s ETF outflows. JPMorgan analysts think more price corrections are coming
Tradewind, Canadian Mint to Verify Origins of Precious Metals on Blockchain
Tradewind Markets, a blockchain-powered gold trading platform backed by stock trading firm IEX, has developed and launched a system for stablecoin issuers on its platform to track the provenance of their precious metals.
Taking Yield Farming to the Next Level With Animal Farm
Taking Yield Farming to the Next Level With Animal Farm sponsored As a result of DeFi protocols, access to finance has been democratized, allowing anyone with an Internet connection
How high can Bitcoin go? New BTC price prediction sees cycle top at $180K
Zoltan Vardai1 hour agoHow high can Bitcoin go? New BTC price prediction sees cycle top at $180KBTC price can more than double in price this cycle, thanks to Bitcoin ETFs, next month"s halving, and easing monetary condit
OKEx Blockdream Ventures Partners With WAX
OKEx Blockdream Ventures Partners With WAX sponsored OKEx Blockdream Ventures Bets on the WAX Ecosystem with WAXP Token Purchase (Miami, FL) D
Biggest Movers: XTZ and LINK Surge to 1-Month Highs on Thursday
Biggest Movers: XTZ and LINK Surge to 1-Month Highs on Thursday Despite the crypto market trading lower today, Tezos and LINK both rose to one-month highs on Thursday. XTZ was up b
South African exchange VALR wins dual crypto licenses
Gareth Jenkinson10 hours agoSouth African exchange VALR wins dual crypto licensesVALR receives two licenses from South Africa’s Financial Sector Conduct Authority following new requirements for exchanges in the country
Turner Wright8 hours agoParliamentary committee calls for shutdown of Worldcoin in KenyaThe committee’s recommendations included having the Kenyan government consider implementing a comprehensive framework for digital
Bitcoin’s Blockchain Growth Accelerates With Trend of Ordinal Inscriptions
Bitcoin"s Blockchain Growth Accelerates With Trend of Ordinal Inscriptions The Bitcoin blockchain has 40.49 gigabytes (GB) to go until it reaches half a terabyte (TB), and with the
Bitcoin Cash Tokenization Bolstered by the Creation of an SLP Foundation
Bitcoin Cash Tokenization Bolstered by the Creation of an SLP FoundationOn Monday, Bitcoin Cash (BCH) supporters were introduced to a Simple Ledger Protocol alliance called the SLP
Localcryptos P2P Market Adds Support for Bitcoin Cash
Localcryptos P2P Market Adds Support for Bitcoin Cash Localcryptos, the noncustodial P2P cryptocurrency market, has added bitcoin cash to its platform. This is the fifth cryptocurr