{"id":9665,"date":"2021-07-15T15:55:45","date_gmt":"2021-07-15T15:55:45","guid":{"rendered":"https:\/\/www.buyucoin.com\/crypto-labs\/fed-chair-jerome-powell-says-you-wouldnt-need-cryptocurrencies-if-you-had-a-digital-us-currency\/"},"modified":"2021-07-15T15:55:45","modified_gmt":"2021-07-15T15:55:45","slug":"fed-chair-jerome-powell-says-you-wouldnt-need-cryptocurrencies-if-you-had-a-digital-us-currency","status":"publish","type":"post","link":"https:\/\/www.buyucoin.com\/crypto-labs\/fed-chair-jerome-powell-says-you-wouldnt-need-cryptocurrencies-if-you-had-a-digital-us-currency\/","title":{"rendered":"Fed Chair Jerome Powell Says \u2018You Wouldn\u2019t Need Cryptocurrencies if You Had a Digital US Currency\u2019"},"content":{"rendered":"

Federal Reserve Chairman Jerome Powell believes that there is no need for cryptocurrencies if there is a digital dollar. \u201cI think that\u2019s one of the stronger arguments in its favor,\u201d he said. The Fed chair also insists that the U.S. is not in danger of losing its reserve currency status.<\/strong><\/p>\n

Fed Chair Powell Thinks Cryptocurrencies Aren\u2019t Needed When There Is Digital Dollar<\/h2>\n

Federal Reserve Chairman Jerome Powell talked about cryptocurrencies, stablecoins, and a digital dollar during a congressional hearing before the U.S. House of Representatives Financial Services Committee Wednesday.<\/p>\n

During the hearing, Rep. Stephen Lynch from Massachusetts asked if a \u201cswift action\u201d on the Fed\u2019s digital currency would \u201ccalm\u201d the markets and whether a digital dollar would be a more viable alternative than having thousands of cryptocurrencies or stablecoins emerge in the payments system.<\/p>\n

\u201cI think that may be the case. I think that\u2019s one of the arguments that are offered in favor of digital currency,\u201d Powell replied, elaborating:<\/p>\n

In particular, you wouldn\u2019t need stablecoins, you wouldn\u2019t need cryptocurrencies if you had a digital U.S. currency. I think that\u2019s one of the stronger arguments in its favor.<\/p>\n

Responding to a different question, Powell noted that stablecoins are a lot like money market funds or bank deposits \u201cbut without the regulation.\u201d He opined: \u201cWe have a tradition in this country where the public\u2019s money is held in what is supposed to be a very safe asset. We have a pretty strong regulatory framework around bank deposits, for example, or money market funds. That doesn\u2019t exist really for stablecoins.\u201d<\/p>\n

<\/p>\n

Rep. Lynch also raised concerns about the \u201cslowness\u201d of digital dollar development citing that many central banks worldwide are progressing faster than the U.S. in this area.<\/p>\n

Powell replied: \u201cI think this is the beginning of an accelerating decision process. We have a lot of work left to do on the technical side and on the policy side, but a critical part of it is just public consultation.\u201d He emphasized: \u201cI\u2019m really concerned about getting this right \u2026 I think it\u2019s way more important to get it right than it is to get it fast.\u201d<\/p>\n

The Fed chairman also addressed Lynch\u2019s concerns about the U.S. losing its reserve currency status. \u201cOn reserve currency, the U.S. is the reserve currency,\u201d Powell insisted:<\/p>\n

There really isn\u2019t a good competitor out there. All the things you need to be a reserve currency, the United States has it \u2026 We are not in danger of losing it, certainly not to China.<\/p>\n

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

Bitcoin News
\nRegulation, CBDC, central bank digital currency, Cryptocurrencies, Digital Dollar, Fed Chair, Fed Chairman, fed digital dollar, Jay Powell, jerome powell, reserve currency, Stablecoins<\/p>\n","protected":false},"excerpt":{"rendered":"

Federal Reserve Chairman Jerome Powell believes that there is no need for cryptocurrencies if there is a digital dollar. \u201cI think that\u2019s one of the stronger arguments in its favor,\u201d he said. The Fed chair also insists that the U.S. is not in danger of losing its reserve currency status. Fed Chair Powell Thinks Cryptocurrencies…<\/p>\n","protected":false},"author":0,"featured_media":9666,"comment_status":"","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[53,3],"tags":[],"class_list":["post-9665","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\/9665"}],"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=9665"}],"version-history":[{"count":0,"href":"https:\/\/www.buyucoin.com\/crypto-labs\/wp-json\/wp\/v2\/posts\/9665\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.buyucoin.com\/crypto-labs\/wp-json\/wp\/v2\/media\/9666"}],"wp:attachment":[{"href":"https:\/\/www.buyucoin.com\/crypto-labs\/wp-json\/wp\/v2\/media?parent=9665"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.buyucoin.com\/crypto-labs\/wp-json\/wp\/v2\/categories?post=9665"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.buyucoin.com\/crypto-labs\/wp-json\/wp\/v2\/tags?post=9665"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}