{"id":6146,"date":"2021-07-15T19:55:26","date_gmt":"2021-07-15T18:55:26","guid":{"rendered":"https:\/\/coinscreed.com\/staging\/?p=6146"},"modified":"2021-07-15T19:55:33","modified_gmt":"2021-07-15T18:55:33","slug":"fed-chair-jerome-powell-believes-there-is-no-need-for-cryptocurrencies","status":"publish","type":"post","link":"https:\/\/coinscreed.com\/staging\/fed-chair-jerome-powell-believes-there-is-no-need-for-cryptocurrencies\/","title":{"rendered":"Fed Chair Jerome Powell believes there is no need for cryptocurrencies"},"content":{"rendered":"\n
Federal Reserve Chairman Jerome Powell in a statement said, ‘You wouldn\u2019t need cryptocurrencies if you had a digital US currency'<\/h5>\n\n\n\n
\"Fed<\/figure><\/div>\n\n\n\n

\u201cI think that\u2019s one of the stronger arguments in its favour,\u201d he said. Moreover, the Fed chairman maintains that the US is not in risk of losing its status as the world's reserve currency<\/a>.<\/p>\n\n\n\n

Federal Reserve Chairman Jerome Powell discussed cryptocurrencies, stablecoins, and a digital currency\r\n \r\n \r\n \r\n <\/g>\r\n \r\n \r\n \r\n <\/clipPath>\r\n <\/defs><\/svg><\/span><\/a> during a congressional hearing before the Financial Services Committee of the United States House of Representatives on Wednesday.<\/p>\n\n\n\n

Rep. Stephen Lynch of Massachusetts asked during the hearing whether a “rapid action” on the Federal Reserve's digital currency would “calm” the markets and whether a digital dollar would be a more viable option to hundreds of cryptocurrencies or stablecoins emerging in the payments system.<\/p>\n\n\n\n

\u201cI believe that is the case. That, I believe, is one of the reasons made in favour of digital currency,\u201d Powell responded, elaborating:<\/p>\n\n\n\n

You would not require stablecoins or cryptocurrencies<\/a> if you had a digital US money. That, I believe, is one of the more compelling arguments in its favour.<\/p>\n\n\n\n

Powell added, in response to a related inquiry, that stablecoins are similar to money market funds or bank deposits “but without the regulation.” He stated: “In this nation, we have a tradition of storing the public's money in what is meant to be a very safe asset.<\/p>\n\n\n\n

We have a fairly robust regulatory system in place for bank deposits and money market funds, for example. That is not true for stablecoins.\u201d<\/p>\n\n\n\n

Rep. Lynch also expressed concern about the “slowness” with which the digital currency<\/a> is developing, noting that various central banks globally are making progress in this area faster than the US.<\/p>\n\n\n\n

Powell responded, \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 stated emphatically, “I thinik it\u2019s way more important to get it right than it is to get it fast.\u201d<\/p>\n\n\n\n

Additionally, the Fed chairman addressed Lynch's fears about the US losing its standing as a reserve currency. \u201cOn reserve currency, the U.S. is the reserve currency,\u201d<\/p>\n\n\n\n

Powell still being insistent added:<\/p>\n\n\n\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><\/blockquote>\n","protected":false},"excerpt":{"rendered":"

Federal Reserve Chairman Jerome Powell in a statement said, ‘You wouldn\u2019t need cryptocurrencies if you had a digital US currency’ \u201cI think that\u2019s one of the stronger arguments in its favour,\u201d he said. Moreover, the Fed chairman maintains that the US is not in risk of losing its status as the world’s reserve currency. Federal […]<\/p>\n","protected":false},"author":13,"featured_media":6149,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[21,83,3,26],"tags":[376,1090,1511,926],"class_list":["post-6146","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news","category-bitcoin-news","category-breaking","category-cryptocurrencies","tag-cryptocurrencies","tag-fed-chair","tag-jerome-powell","tag-stablecoins"],"jetpack_featured_media_url":"https:\/\/coinscreed.com\/staging\/wp-content\/uploads\/2021\/07\/image-133.png","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/posts\/6146","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/users\/13"}],"replies":[{"embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/comments?post=6146"}],"version-history":[{"count":0,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/posts\/6146\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/media\/6149"}],"wp:attachment":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/media?parent=6146"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/categories?post=6146"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/tags?post=6146"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}