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Federal Reserve Chairman Jerome Powell believes that if there is a digital dollar, there is no need for cryptocurrency. “I think this is one of the stronger arguments to support it,” he said. The Fed Chairman also insisted that the United States is not in danger of losing its reserve currency status.
Federal Reserve Chairman Jerome Powell talked about cryptocurrencies, stablecoins and digital dollars at a congressional hearing held by the US House of Representatives Financial Services Committee on Wednesday.
At the hearing, Rep. Stephen Lynch from Massachusetts asked whether the Fed’s “swift action” of digital currencies would “calm” the market, and whether the digital dollar is more viable than the presence of thousands of cryptocurrencies or stablecoins in payment systems. .
“I think it might be so. I think this is one of the arguments in favor of digital currency,” Powell replied, explaining in detail:
In particular, you don’t need stablecoins, and if you have digital US currency, you don’t need cryptocurrencies. I think this is one of the stronger arguments to support it.
In answering another question, Powell pointed out that stablecoins are much like money market funds or bank deposits, “but without supervision.” He believes: “In this country, we have a tradition that public funds are stored in assets that should be very safe. For example, we have developed a very strong regulatory framework around bank deposits or money market funds. For stablecoins , This does not exist.”
Representative Lynch also expressed concern about the “slowness” of the development of the digital dollar, on the grounds that many central banks around the world are making progress in this area faster than the United States.
Powell replied: “I think this is the beginning of an accelerated decision-making process. We still have a lot of work to do in terms of technology and policy, but one of the key parts is just public consultation.” He emphasized: “I really care about Do it well…I think doing it well is more important than doing it quickly.”
The chairman of the Federal Reserve also talked about Lynch’s concerns about the loss of the reserve currency status of the United States. “In terms of reserve currency, the United States is a reserve currency,” Powell insisted:
There is really no good competitor. The United States has everything needed to become a reserve currency… We are not in danger of losing it, and of course we will not lose to China.
What do you think of the comments made by Federal Reserve Chairman Jerome Powell? Let us know in the comments section below.
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