Fed Res Chair says no intention to ban crypto

Jerome Powell confirmed through his statement that they have no intention to ban Crypto but regulation on StableCoins is a necessary part of the agenda.

On Thursday Jerome Powell, The chairman of the Board of Governors of the Federal Reserve System, talked about the Central Bank Digital Currency, Crypto and stablecoins in a recent meeting held before the House Financial Services Committee. 

The main aim of the meeting was to discuss the Covid-19 pandemic with the Federal Reserve & US Treasury. 

During the meeting, a question was asked by the U.S. Congressman Ted Budd. Ted asked Powell by taking the reference of Powell’s past stance on crypto. Then Powell clearly said no intention to ban crypto. 

Ted took the reference of July hearing where Powell claimed that “we wouldn’t need stablecoins, we  wouldn’t need cryptocurrencies if we had a digital U.S. currency”. So clearly Powell’s statements were against adoption of the crypto industry but they were in favour to adopt the crypto underlying technology i.e blockchain. 

So, Ted asked the question to Powell and added

“So Mr. Chairman, as a matter of policy, is it your intention to ban or limit the use of cryptocurrencies like we are seeing in China”

Mr. Powell replied immediately and clearly “No”. But Ted thought that Powell mistakenly replied “No”. So once again he asked to Powell

 “no intention to ban?”

Further Powell stated on the Stablecoins and asserted that regulation on the Stablecoins is a need 

“Stablecoins are like money market funds. They’re like bank deposits but they are to some extent outside the regulatory parameter and it’s appropriate that they be regulated, same activity, same regulation”

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