Federal Reserve Chairman Jerome Powell expressed his concerns about cryptocurrencies during a recent hearing organized by the US House Committee on Financial Services
Addressing the US House Committee on Financial Services today, Federal Reserve Chairman Jerome Powell said that existing unsupported digital currencies are “vehicles of speculation”:
Existing digital currencies… are really vehicles for speculation. They are not used in payments, they are not a store of value, they are speculation (like gold). That is what they are used for.
During the hearing, Powell insisted that the Fed should keep its central bank digital currency.[सीबीडीसी]No decision has been taken on release. However, the central bank is determined to “get to the bottom” of that issue to gain an understanding of both technical and policy issues, indicating that it is in no hurry to issue a digital dollar:
Powell has made it clear that cryptocurrencies should not hinder the ability of law enforcement to track payments:This will be something that we will be investing a fair amount of time and expertise to fix…
This is not something that we should tolerate.
The Fed chief compared the development of cryptocurrencies to other technologies, such as railroads, telephones and the Internet, emphasizing the importance of developing a regulatory framework that would prevent malicious use cases of the likes of terrorism financing.