Federal Reserve Chairman Jerome Powell confirmed during a hearing before the House Financial Services Committee that he does not intend to ban or restrict the use of cryptocurrencies. He also commented on the regulation of stablecoins.
Powell Says ‘No Intention to Ban’ Cryptocurrency
Federal Reserve System Governor Jerome Powell spoke about cryptocurrencies, stablecoins, and central bank digital currencies (CBDCs) during a hearing before the House Financial Services Committee on Thursday. However, the main focus of the meeting was on the responses of the Federal Reserve and the Treasury Department to the Covid-19 pandemic. Treasury Secretary Janet Yellen spoke on behalf of the Treasury.
U.S. Congressman Ted Budd of North Carolina told Powell, “At a July hearing before this committee, I was asked about central bank digital currencies or central bank digital currencies and their impact on stablecoins and other cryptocurrencies, and I said, “You don’t need stablecoins, you won’t You need cryptocurrency if you have a digital US currency. “
Follow MP Budd:
So, Mr. President, as a matter of policy, do you intend to ban or restrict the use of cryptocurrencies as we see in China.
Powell replied immediately: “No.”
The Fed Chairman quickly followed up his answer with an admission that he had “speak wrong” earlier when he said, “You won’t need digital currencies.” Powell added: “Take the word cryptocurrency from that sentence.”
Rep. Budd felt that Powell’s response to banning crypto was not clear enough so he asked again. “But, no intention of banning?” Powell confirmed that there is no intention to ban cryptocurrencies.
The Fed Chairman proceeded to talk about stablecoins, saying:
Stable currencies are like money market funds. They are like bank deposits but to some extent outside the regulatory parameter and it is appropriate to be subject to regulation, same activity, same regulation.
On Friday, the Wall Street Journal reported that the Biden administration is seeking to regulate stablecoin issuers as banks.
What do you think of Fed Chairman Powell saying that there is no intention to ban cryptocurrencies? Let us know in the comments section below.
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