Jerome Powell, head of the US Federal Reserve System, has previously criticized cryptocurrencies on numerous occasions. In his opinion, such instruments create great risks for investors. Even if bitcoin can push gold into the background, then this asset does not pose any threat to the dollar, Powell said back in March.
In the middle of this week, the head of the Federal Reserve made a speech in the House of Representatives and announced that the authorities need to seriously tackle the regulation of stablecoins.
It is possible to control transactions with such instruments using a mechanism that is used in the field of bank deposits and mutual funds.
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Powell said that digital currencies backed by fiat money have a lot in common with products already on the market. Therefore, there is no need to invent anything in this matter. It is enough for the state to use the regulatory and legal framework that operates in the traditional financial market.
The head of the Federal Reserve did not rule out that in the future stablecoins could become part of the global market.
The regulator is simultaneously considering options for creating a digital dollar (CBDC). According to Powell, such a tool could become an alternative to bitcoin.