Federal Reserve Chairman Jerome Powell said Wednesday that he doesn’t view cryptocurrencies as a “financial stability concern”.

"> Federal Reserve Chairman Jerome Powell said Wednesday that he doesn’t view cryptocurrencies as a “financial stability concern”.

">
Jerome Powell  says  ‘ cryptocurrencies are not financial stability concern’
Jerome Powell says ‘ cryptocurrencies are not financial stability concern’

Federal Reserve Chairman Jerome Powell said Wednesday that he doesn’t view cryptocurrencies as a “financial stability concern”.

Cryptocurrencies “are really speculative assets,” Powell said in a press conference Wednesday after the Fed said it would accelerate the pace of its tapering of bond purchases and penciled in three hikes of its benchmark interest rate next year.

However, “I don’t see them [cryptocurrencies] as a financial stability concern at the moment,” Powell said. “I do think they are risky, they’re not backed by anything. And I think there’s a big consumer issue for consumers who may or may not understand what they’re getting.”

Powell also highlighted the role of stablecoins, and said he supported the views expressed in the President’s Working Group’s report, which called on Congress to quickly pass new legislation that would require stablecoins to be issued by insured banks.

“Stablecoins can certainly be a useful, efficient consumer serving part of the financial system if they’re properly regulated,” Powell said. “And right now they aren’t.”

“And they have the potential to scale particularly if they were to be associated with one of the very large tech networks that exist,” Powell added.

Will you join the Bitcoin revolution? It's up to you to get on board the crypto train! To do so, and start learning about this exciting world, don't wait to create an account on Binance, the leading Bitcoin and crypto exchange. Click here to signup and safe from the trading fees.

img
img

Nathan George

Blogger and Influencer

Related Post
shibainu
Join to Us
Newsletter

Stay Updated on all that's new add noteworthy

Subscribe Now