Last updated on January 20th, 2022 at 04:26 pm
Jerome Powell, the United States Federal Reserve Chairman has the opinion that cryptocurrency won’t affect the US economy negatively, nor would it lead to a financial instability scenario in the markets. Though he holds this opinion, Powell believes that it was crucial that the government monitored the developments that were occurring in the crypto space.
Powell agrees with the recently published findings of the President’s Financial Markets Task Force that believed that the crypto space needs monitoring like what is obtainable in the banking sector to ensure that the risks are mitigated.
According to Powell in an interview with CNBC Television,
“Stable coins can certainly be a useful and efficient part of the financial system serving consumers if they are properly regulated,” said Powell. “At the moment, they are not. They have the potential to evolve, especially if they were to be associated with one of the very large existing technology networks.”
He went on to add,
“You could have an immediate systemically important payments network that lacked proper regulations and protections. The public relies on the government, and the Fed, in particular, to ensure that the payment system is secure and reliable.”
Powell doesn’t believe that crypto should be banned in the US like how the Chinese government did, as it won’t lead to financial instability in the market. The Fed Chairman believes that the crypto space should be monitored.
