Fed Chair Jerome Powell says cryptocurrencies and stablecoins won't be needed once the US has a digital currency
FedChair Jerome Powellchallenged the need for cryptos if and when plans for a US digital currency comes into fruition.
- "You wouldn't need
cryptocurrenciesif you had a digital US currency," the Fed chief said.
- Powell was responding to a question posed by Rep. Stephen Lynch during the House testimony.
"You wouldn't need stablecoins, you wouldn't need cryptocurrencies, if you had a digital US currency," the Fed chief said. "I think that's one of the stronger arguments in its favor."
Stablecoins are a type of cryptocurrency pegged to an asset such as a fiat currency or a precious metal.
"We have a tradition in this country where the public's money is held in what is supposed to be a very safe asset," Powell said. "That doesn't exist for stablecoins, and if they're going to be a significant part of the payments universe…then we need an appropriate framework, which frankly we don't have."
Powell was responding to a question from Rep. Stephen Lynch during the House Financial Services Committee testimony on whether a "swift action" on the Fed's part of issuing a
A digital currency from the Fed would enter a packed space. There are over 8,500 cryptocurrencies, according to data from CoinGecko, boasting a market capitalization of $1.4 trillion. At its peak, the entire ecosystem was worth $2 trillion.
In May, Powell revealed that the Fed has taken further steps in exploring a digital currency and will be releasing a discussion paper this summer outlining its thinking on digital payments.
He said the paper is meant to "stimulate broad conversation" on issues related to payments, financial inclusion, data privacy, and information security.
Powell, like other central bank heads around the world, has raised concern over the volatility of cryptocurrencies.
- The Cybertruck's lack of door handles confused its first buyers — leading Elon Musk to show them how to open the truck
- Adani Group to invest USD 75 bn to scale up AGEL's RE portfolio to 45 GW: Gautam Adani
- OnlyFans star Riley Reid plans to 'immortalize' herself using AI. Here's how her team built her new chatbot.
- Electric eels can change the genetic composition of other organisms by shocking them!
- Exploring vibrant flavors: 10 healthy salad options in India
- 10 dry fruits to include in your daily winter diet
- Paytm to focus on big ticket loans to low-risk credit-worthy customers
- 10 Cities in India perfect for a chill and relaxed life