Fed chair Jerome Powell talked about cryptocurrencies during an online meeting organized by the global financial institution Bank for International Settlements.
Related: Jerome Powell Notes Digital Currencies and Fiat Can Coincide
Powell pointed out the volatile nature of crypto assets, concluding that they can't be a store of value. Hence, he doesn't consider BTC to be a useful currency.The head of Federal Reserves called cryptocurrencies "assets for speculation" noting that commonly they don't serve as a payment option. Next, Powell stated BTC is more likely to be an alternative to gold than to the dollar.
Powell talked about stablecoins as well, saying that in comparison they are "an improvement". In his words, stablecoins may have a role to play in finance, but that role won't be forming the basis of a new global monetary system. The congressman said one day Fed might build a digitized dollar, but that only after deep study and acceptance by the American public and government.
Earlier, during the conference held in Basel, Switzerland, the chairman said digital currencies and fiat can coexist. In February, Secretary of the US treasury Janet Yellen referred to the crypto industry. Then she called BTC "extremely inefficient".