Federal Reserve Chairman Jerome Powell confirmed during a hearing before the House Financial Services Committee that he had no intention of banning or restricting the use of cryptocurrencies. He also commented on stable currency control.
Powell says ‘there is no desire to ban’ crypto
Jerome Powell, chairman of the Board of Governors of the Federal Reserve System, spoke on cryptocurrency, stablecoin and the Central Bank Digital Currency (CBDC) during a hearing before the House Financial Services Committee on Thursday. However, the main focus of the meeting was the response of the Federal Reserve and the Treasury to the Kovid-1 pandemic epidemic. Treasury Secretary Janet Yellen spoke on behalf of the Treasury Department.
Ted Bud Powell, a U.S. congressman from North Carolina, told the committee: “During the July hearing before this committee, you were asked about CBDCs or the central bank’s digital currency and its effects on stable currency and other cryptocurrencies, and you said, ‘You don’t need stable currency, if you You wouldn’t need a cryptocurrency if you had a digital US currency.
Representative Budd continued:
So Mr. Chairman, as a matter of policy, do you intend to ban or restrict the use of such cryptocurrencies in China.
Powell immediately replied: “No.”
The Fed chairman quickly followed his answer by admitting that he had “said the wrong thing” before when he said, “You won’t need cryptocurrency.” Powell added, “Get the word cryptocurrency out of that sentence.”
Rep. Bud felt that Powell’s answer to banning cryptocurrency was not clear enough so he asked again. “But, no desire to ban?” Powell has confirmed that there is no intention to ban crypto.
The Fed chair starts talking about a stable currency, saying:
Stablecoins are like money market funds. They are like bank deposits but they are somewhat out of regulatory parameters and it is appropriate that they are regulated, same activity, same control.
On Friday, the Wall Street Journal reported that the Biden administration seeks to regulate stable issuers as banks.
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