Federal Reserve Chairman Jerome Powell believes that the US federal government needs to regulate the cryptocurrency market, but there is no blanket ban on Bitcoin (BTC) and other digital assets in sight.
In response to a question from the Republican representative Ted buddy from North CarolinaPowell made it clear that a Chinese-style digital asset ban is not being considered. Rep Budd’s question came in response to Powell’s doubts about the regulatory status of stablecoins and the central bank’s ongoing deliberations around the call. “digital dollar”. (In Powell’s view, a central bank digital currency, or CBDC, could do many of the functions of stablecoins and cryptocurrencies, but without the regulatory risk.)
“Stablecoins are like money market funds [y] like bank deposits, but some of them are outside the regulatory framework and it is appropriate that they be regulated “, called. “Same activity, same regulation.”
Fed chief Powell says he has no intention of banning #Bitcoin and cryptocurrencies pic.twitter.com/i2zfRPk1je
to???? LilMoonLambo (@LilMoonLambo) September 30, 2021
Fed chief Jerome Powell says he has no intention of banning bitcoin and cryptocurrencies
A central bank digital currency has been on the Fed’s radar for some time, but policy makers remain undecided about continuing the project. In the meantime, the central bank has commissioned several investigative reports into the benefits and potential obstacles to issuing a CBDC.
Powell oversees the Central Bank’s Open Markets Committee, which is responsible for setting monetary policy in the United States. Earlier this month, the committee decided to keep its current stimulus programs intact, but said the pandemic-induced bond-buying program could end soon. The warning appears to have put some downward pressure on risky assets, including stocks and cryptocurrencies.