Federal Reserve Chairman Jerome Powell stated that he does not believe that cryptocurrencies will affect financial stability. However, he pointed out that they are risky, “for consumers who may or may not understand what they get, there is a big consumer problem.”

Fed Chairman Powell said that cryptocurrencies are risky but are not currently a financial stability issue

Federal Reserve Chairman Jerome Powell talked about cryptocurrencies in a press conference on Wednesday. Commenting on whether cryptocurrencies pose a threat to the country’s financial stability, he said:

I currently don’t think they are financial stability issues. I do think they are risky. They don’t have any support.

Powell continued: “I think there are big consumer problems for consumers who may or may not know what they get,” he added. “There must be developments in the market that deserve attention, and these developments It’s not actually within our jurisdiction.”

Powell also discussed stablecoins. He pointed out that he supports the views expressed in the Presidential Working Group report, which recommends supervision of stablecoin issuers like banks.

The Chairman of the Federal Reserve pointed out that “if properly regulated, stablecoins can certainly become a useful and efficient consumer service part of the financial system,” the Chairman of the Federal Reserve emphasized. “Not yet.” Powell concluded:

They have the potential for expansion, especially if they are associated with one of the existing very large technological networks.

This week, the Bank of England issued a financial stability report stating that crypto assets “currently constitute Limited direct risk For the financial stability of the UK. However, the report warned that “if they continue to grow at the current rapid growth rate and become more closely linked to the wider financial system, they will bring many financial stability risks. “

What do you think of Fed Chairman Powell’s remarks? Please let us know in the comments section below.

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