Cryptocurrencies and a US central bank digital currency may coexist, according to comments made by Federal Reserve Chairman Jerome Powell.
The Fed chair said this while responding to a direct question on the subject of Sen. Pat Tommy during Powell’s re-nomination hearing on Capitol Hill.
Lawmakers want to know if there is anything the Fed can do to prevent the digital dollar and stablecoins from co-existing.
According to business Insider, replied Powell.No, not at all.,
Their response shows that if Congress approved a CBDC and the Fed were able to launch one, nothing would happen.”Prevent a well regulated, privately issued stablecoin from co-existing“Within the same financial system as the digital dollar.
An example would be USD Coin (USDC), a US dollar-pegged stablecoin launched by Circle and Coinbase.
crypto report ready
Powell also said that long overdue Reports on digital currencies should come out soon, with the deadline set within weeks.
He told Sen. Mike Crapo that the report on cryptocurrencies is ready and the delay in releasing it was mainly due to monetary policy adjustments.
He said that coming up with the report was a difficult task and the agency “wasn’t quite able to make it through”. [it] needs to be received.” However, it is now ready for publication.
,The report is really ready to go and I hope we drop it, I hate to say it again in the coming weeks but it’s really in a state where it’s ready to go,” the Fed chair reiterated.
According to Powell, the structure of engagement with the report was primarily “asking questions and seeking input from the public, “and not just taking a predetermined position on issues.
But that doesn’t mean the Fed won’t take the position, he said.
Powell said In December he did not think that crypto posed any threat to the stability of the US financial system. He also previously told Congress that the Fed was not looking to take the Chinese route and ban cryptocurrencies.