Federal Reserve Chairman Jerome Powell says that he doesn’t see cryptocurrencies as a monetary stability concern. However, he famous that they’re dangerous and “there’s massive shopper points for shoppers who might or might not perceive what they’re getting.”
Fed Chair Powell Says Cryptos Are Risky however Currently Not a Financial Stability Concern
Fed Chairman Jerome Powell talked about cryptocurrency in a press convention Wednesday. Commenting on whether or not cryptocurrencies are a risk to the nation’s monetary stability, he stated:
I don’t see them as a monetary stability concern for the time being. I do assume they’re dangerous. They’re not backed by something.
“I believe there’s massive shopper points for shoppers who might or might not perceive what they’re getting,” Powell continued, including that “There are definitely developments within the markets which can be price following, that are actually not in our jurisdiction.”
Powell additionally mentioned stablecoins. He famous that he helps the view expressed within the President’s Working Group’s report, which recommends stablecoin issuers be regulated like banks.
Noting that “Stablecoins can definitely be a helpful, environment friendly consumer-serving a part of the monetary system in the event that they’re correctly regulated,” the Fed chair harassed that “Right now, they aren’t.” Powell concluded:
They have the potential to scale, notably in the event that they had been to be related to one of many very massive tech networks that exist.
This week, the Bank of England issued a monetary stability report stating that crypto belongings “at the moment pose limited direct risks to UK monetary stability.” However, the report warns that “they may current a lot of monetary stability dangers in the event that they proceed to develop at their present speedy tempo, and as they develop into extra interconnected with the broader monetary system.”
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