Fed chairman Jerome Powell dismisses cryptocurrencies as concerns about financial stability, but warns that they are risky-regulation
Fed chairman Jerome Powell dismisses cryptocurrencies as concerns about financial stability, but warns that they are risky-regulation
The chairman of the Federal Reserve, Jerome Powell, says that he does not see cryptocurrencies as concerns about financial stability. However, he found that they are risky and "There are big consumer problems for consumers who may not understand what they get".
Fed boss Powell says that cryptos are risky, but currently no problem of financial stability
Fed boss Jerome Powell spoke on Wednesday in a press conference on cryptocurrency. On the question of whether cryptocurrencies are a threat to the country's financial stability, he said:
I currently do not see them as concerns about financial stability. I think you are risky. They are not supported by anything.
"I think there are big consumer problems for consumers who may not understand what they get," continued Powell, adding: "There are certainly developments in the markets that are worth being pursued that really do not fall into our jurisdiction."
powell also spoke about stable coins. He noted that he supports the view expressed in the report of the Presidential Working Group, which recommends regulating issuers of stablecoins such as banks.
"Stable coins can certainly be a useful, efficient part of the financial system that serves consumers if they are properly regulated," emphasized the Fed chairman: "At the moment you are not." Powell Castle:
You have the potential for scaling, especially if you are connected to one of the very large existing technology networks.
This week the Bank of England issued a report on financial stability, which means that crypto-assets “at the moment”. limited risks to British financial stability. " However, the report warns that "they will represent a number of risks for financial stability if they continue to grow with their current high pace and network more with the entire financial system".
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