Federal Reserve Chairman Jerome Powell stated that he is not worried that encryption will undermine U.S. financial stability
US Federal Reserve Board Chairman Jerome Powell hinted that although government agencies should consider monitoring the development of the crypto field, he does not believe that cryptocurrency is a financial stability issue in the US market.
Powell was answering the Wall Street Journal’s Michael Derby question on encryption on Tuesday Supported The conclusions of the report issued by the President’s Financial Markets Working Group on November 1.The report Recommended stablecoin issuers Should be subject to “appropriate federal oversight” similar to banks, which is “urgently needed” legislation to address risks.
“If it is properly regulated, stablecoins can certainly become a useful and efficient consumer service part of the financial system,” Powell said. “Right now, they are not. They have the potential to expand, especially if they are linked to one of the existing very large technological networks.”
The Fed Chairman added:
“You may have a payment network of direct system importance, but without proper supervision and protection measures. The public especially relies on the government and the Federal Reserve to ensure that the payment system is safe and reliable.”
Before the Senate confirms that the hearing will become the next Fed chairman, Powell seems to support the Biden administration’s latest position on digital assets. Member of the Federal Reserve Board of Governors since 2012 and Chairman since 2018, Powell is the candidate for the president of the United States Hold the same position until 2026.
Although the chairman of the Federal Reserve stated that cryptocurrencies may not be a financial stability issue in the United States, he still described digital currencies used as speculative assets as “risky” and “without any support.”Powell had previously expressed his concerns about encryption – and added that he would Disapproval of banned assets China’s approach-at the same time expresses the need for regulation of stablecoins.
“Stablecoins are like money market funds, like bank deposits, but to some extent, they are outside the scope of regulation and it is appropriate for them to be regulated,” Powell said in September. “The same activities, the same regulations.”