The chairman of the Federal Reserve believes that cryptocurrencies are “real speculative tools” and that “no one uses them for payment.” He then compared cryptocurrencies with gold.His comment Regarding Coinbase’s direct listing on Nasdaq, the issue of cryptocurrency.
Fed Chairman Powell believes that crypto is a speculative activity
Federal Reserve Chairman Jerome Powell (Jerome Powell) talked about cryptocurrencies in an interview with the New York Economic Club on Wednesday. The activity was carried out in Coinbase’s IPO through a direct listing on Nasdaq.
With the increasing popularity of Bitcoin and cryptocurrencies, he was asked if he was concerned about their possible economic impact and people’s ability to use them to make payments. First, “we treat them more as crypto assets,” Powell said, adding:
People call them cryptocurrencies, and they are actually tools for speculation. For example, no one uses them to make payments, such as U.S. dollars.
The chairman of the Federal Reserve then compared how to compare cryptocurrencies with gold. He said: “For thousands of years, humans have given gold unprecedented special value.” “Nevertheless, they have done it for thousands of years.” Powell emphasized that Bitcoin and cryptocurrency “are more like that, actually Shanghai has not been actively used as a means of payment.”
Powell’s comments on cryptocurrencies echoed the speech of the new Treasury Secretary Janet Yellen (Janet Yellen). She stated in February that Bitcoin is a “highly speculative asset.” She also pointed out that it is not “widely used as a transmission mechanism” but an “extremely inefficient transaction method.”
Powell stated in February that digital currency is a “very priority project” for us. Last month, the chairman of the Federal Reserve stated that cryptocurrencies are “essentially a substitute for gold, not a substitute for the U.S. dollar.” He emphasized: “The public needs to understand the risks. The most important thing is volatility. Mining also requires huge energy. And they don’t have any support.”
What do you think of Fed Chairman Powell’s views on cryptocurrencies? Let us know in the comments section below.
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