Fed Chairman Jerome Powell dismisses cryptocurrencies as a concern for financial stability, but warns they are risky – Bitcoin News Regulations

Fed Chairman Jerome Powell dismisses cryptocurrencies as a concern for financial stability, but warns they are risky – Bitcoin News Regulations

Federal Reserve Chairman Jerome Powell says he does not see cryptocurrencies as a problem of financial stability. However, he noted that they are risky and that “there are big problems with consumers who may or may not understand what they are getting.”

Fed President Powell says cryptologists are risky, but they are not currently worried about financial stability

Fed President Jerome Powell spoke about cryptocurrency at a news conference on Wednesday. Commenting on whether cryptocurrencies pose a threat to the country’s financial stability, he said:

At the moment, I do not see them as a problem of financial stability. I think they are risky. They are not supported by anything.

“I think there are big consumer issues for consumers who may or may not understand what they’re getting,” Powell continued, adding that “there are certainly developments in markets that are worth monitoring that are not really within our remit.”

Powell also talked about stable money. He noted that he supports the position expressed in the report of the Working Group of the President, which recommends that issuers of stable coins be regulated as banks.

Noting that “Stablecoins can certainly be a useful, efficient part of the financial system that serves consumers if they are properly regulated,” the Fed chairman stressed that “they are not at the moment.” Powell concluded:

They have the potential to increase, especially if they were connected to one of the very large technology networks that exist.

This week, the Bank of England issued a financial stability report stating that cryptocurrencies “currently represent limited direct risks for the financial stability of the United Kingdom. ” However, the report warns that “they will pose numerous risks to financial stability if they continue to grow at the current rapid pace and as they become increasingly interconnected with the wider financial system.”

What do you think of Powell’s Fed president’s comments? Let us know in the comments section below.

Fed Chairman Jerome Powell dismisses cryptocurrencies as a concern for financial stability, but warns they are risky – Bitcoin News Regulations

Kevin Helms

A student of Austrian economics, Kevin discovered Bitcoin in 2011 and has been an evangelist ever since. His interests lie in the security of Bitcoin, open source systems, network effects and the crossroads between economics and cryptography.




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