We do not see significant macroeconomic implications of cryptocurrency sales – Bitcoin news regulations

We do not see significant macroeconomic implications of cryptocurrency sales – Bitcoin news regulations

Federal Reserve Chairman Jerome Powell says the central bank “doesn’t actually see significant macroeconomic implications” because of cryptocurrency volatility. The Fed president stressed that there is a need for a better crypto regulatory framework.

Fed President Powell says cryptocurrencies need better regulation

Federal Reserve Chairman Jerome Powell testified Wednesday before the Senate Committee on Banking, Housing and Urban Affairs on the “semi-annual report on monetary policy to Congress.”

Senator Kyrsten Sinema (D-AZ) asked him if the Fed was monitoring crypto activities given recent market volatility and what implications crypto has on the broader economic outlook and monetary policy.

“Of course, we follow these events very carefully,” Powell replied, elaborating:

[We are] not seeing significant macroeconomic implications so far.

“The main implication is really what we are saying, and others have been saying for some time, and that is that in this very innovative new space there is really a need for a better regulatory framework,” he stressed.

Powell continued:

The same activity should have the same regulation no matter where it originated, and that is not the case at the moment.

In March, the chairman of the Fed he said: “Our existing regulatory frameworks are not built with the digital world in mind … Stablecoins, digital central bank currencies and digital finance in general, will require changes to existing laws and regulations or even completely new rules and frameworks.”

Powell also told the Senate Banking Committee on Wednesday that the central bank is determined to reduce inflation, which it believes the Fed can achieve. “At the Fed, we understand the difficulties caused by high inflation. “We are strongly committed to reducing inflation and we are moving fast to do that,” he said.

As for the US economy, which could slide into recession, he stressed: “This is not our planned outcome at all, but it is certainly a possibility, and honestly, events in the last few months around the world have made it difficult for us to achieve what we want. is 2% inflation and still a strong labor market. ”

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

We do not see significant macroeconomic implications of cryptocurrency sales – Bitcoin news regulations

Kevin Helms

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

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