{"id":15363,"date":"2021-12-16T17:54:02","date_gmt":"2021-12-16T17:54:02","guid":{"rendered":"https:\/\/www.buyucoin.com\/crypto-labs\/fed-chair-jerome-powell-dismisses-cryptocurrencies-as-financial-stability-concern-but-warns-theyre-risky\/"},"modified":"2021-12-16T17:54:02","modified_gmt":"2021-12-16T17:54:02","slug":"fed-chair-jerome-powell-dismisses-cryptocurrencies-as-financial-stability-concern-but-warns-theyre-risky","status":"publish","type":"post","link":"https:\/\/www.buyucoin.com\/crypto-labs\/fed-chair-jerome-powell-dismisses-cryptocurrencies-as-financial-stability-concern-but-warns-theyre-risky\/","title":{"rendered":"Fed Chair Jerome Powell Dismisses Cryptocurrencies as Financial Stability Concern but Warns They\u2019re Risky"},"content":{"rendered":"

Federal Reserve Chairman Jerome Powell says that he does not see cryptocurrencies as a financial stability concern. However, he noted that they are risky and \u201cthere\u2019s big consumer issues for consumers who may or may not understand what they\u2019re getting.\u201d<\/strong><\/p>\n

Fed Chair Powell Says Cryptos Are Risky but Currently Not a Financial Stability Concern<\/h2>\n

Fed Chairman Jerome Powell talked about cryptocurrency in a press conference Wednesday. Commenting on whether cryptocurrencies are a threat to the country\u2019s financial stability, he said:<\/p>\n

I don\u2019t see them as a financial stability concern at the moment. I do think they are risky. They\u2019re not backed by anything.<\/p>\n

\u201cI think there\u2019s big consumer issues for consumers who may or may not understand what they\u2019re getting,\u201d Powell continued, adding that \u201cThere are certainly developments in the markets that are worth following, which are really not in our jurisdiction.\u201d<\/p>\n

Powell also discussed stablecoins. He noted that he supports the view expressed in the President\u2019s Working Group\u2019s report, which recommends stablecoin issuers be regulated like banks.<\/p>\n

Noting that \u201cStablecoins can certainly be a useful, efficient consumer-serving part of the financial system if they\u2019re properly regulated,\u201d the Fed chair stressed that \u201cRight now, they aren\u2019t.\u201d Powell concluded:<\/p>\n

They have the potential to scale, particularly if they were to be associated with one of the very large tech networks that exist.<\/p>\n

This week, the Bank of England issued a financial stability report stating that crypto assets \u201ccurrently pose limited direct risks<\/a> to UK financial stability.\u201d However, the report warns that \u201cthey will present a number of financial stability risks if they continue to grow at their current rapid pace, and as they become more interconnected with the wider financial system.\u201d<\/p>\n

What do you think about Fed Chair Powell\u2019s comments? Let us know in the comments section below.<\/strong><\/em><\/p>\n

Bitcoin News
\nRegulation, Fed Chair, fed chair crypto, fed chair cryptocurrency, fed chair stablecoins, Federal Reserve Chairman, financial stability, jerome powell<\/p>\n","protected":false},"excerpt":{"rendered":"

Federal Reserve Chairman Jerome Powell says that he does not see cryptocurrencies as a financial stability concern. However, he noted that they are risky and \u201cthere\u2019s big consumer issues for consumers who may or may not understand what they\u2019re getting.\u201d Fed Chair Powell Says Cryptos Are Risky but Currently Not a Financial Stability Concern Fed…<\/p>\n","protected":false},"author":0,"featured_media":15364,"comment_status":"","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[53,3],"tags":[],"class_list":["post-15363","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-blockchain-news","category-coin-news"],"_links":{"self":[{"href":"https:\/\/www.buyucoin.com\/crypto-labs\/wp-json\/wp\/v2\/posts\/15363"}],"collection":[{"href":"https:\/\/www.buyucoin.com\/crypto-labs\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.buyucoin.com\/crypto-labs\/wp-json\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"https:\/\/www.buyucoin.com\/crypto-labs\/wp-json\/wp\/v2\/comments?post=15363"}],"version-history":[{"count":0,"href":"https:\/\/www.buyucoin.com\/crypto-labs\/wp-json\/wp\/v2\/posts\/15363\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.buyucoin.com\/crypto-labs\/wp-json\/wp\/v2\/media\/15364"}],"wp:attachment":[{"href":"https:\/\/www.buyucoin.com\/crypto-labs\/wp-json\/wp\/v2\/media?parent=15363"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.buyucoin.com\/crypto-labs\/wp-json\/wp\/v2\/categories?post=15363"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.buyucoin.com\/crypto-labs\/wp-json\/wp\/v2\/tags?post=15363"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}