Fed Chairman Jerome Powell Says “You Wouldn’t Need Cryptocurrencies If You Had Digital US Currency” – Regulation Bitcoin News Bitcoin
Federal Reserve Chairman Jerome Powell believes that cryptocurrencies are not required when there is a digital dollar. “I think that’s one of the stronger arguments for that,” he said. The Fed chairman also insists that the US does not run the risk of losing its reserve currency status.
Fed Chairman Powell believes that cryptocurrencies are not needed when there are digital dollars
Federal Reserve Chairman Jerome Powell spoke about cryptocurrencies, stablecoins and a digital dollar during a hearing before the US House of Representatives Financial Services Committee on Wednesday.
During the hearing, Massachusetts MP Stephen Lynch asked if “quick action” on the Fed’s digital currency would “calm” the markets and whether a digital dollar would be a more viable alternative than thousands of cryptocurrencies or stablecoins in payments to show up system.
“I think that may be the case. I think that is one of the arguments that are being offered in favor of digital currency, “replied Powell, adding:
In particular, you wouldn’t need stablecoins, you wouldn’t need cryptocurrencies if you had US digital currency. I think that’s one of the strongest arguments for it.
To another question, Powell replied that stablecoins were very similar to money market funds or bank deposits, “but without the regulation.” He said, “We have a tradition in this country where the public’s money is held in what is supposedly a very safe asset. For example, we have a pretty strong regulatory framework for bank deposits or money market funds. That doesn’t really exist for stablecoins. “
MP Lynch also expressed concern about the “slowness” of the development of the digital dollar, pointing out that many central banks around the world are moving faster than the US in this area.
Powell replied, “I think this is the beginning of an accelerating decision-making process. We still have a lot to do on the technical and political side, but a crucial part of that is just the public consultation. ”He emphasized,“ I’m very worried about getting this right … I think it’s much more important to get it right than to do it quickly. “
The Fed chairman also addressed Lynch’s concerns about the loss of the US reserve currency. “In terms of reserve currency, the US is the reserve currency,” Powell said:
There really is no such thing as a good competitor. The USA has all the things that are needed as reserve currency … We do not run the risk of losing them, especially not to China.
What do you think of Fed chief Jerome Powell’s comments? Let us know in the comment section below.
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