Select Page

Fed Chairman: Dollar-Based CBDC Could Reduce Need for Stablecoins

Fed Chairman: Dollar-Based CBDC Could Reduce Need for Stablecoins
Loading...
This article is added for educational purpose only. All credit goes to the respected author of this article. All In One Crypto App do not hold any liabilities of this article. You can get the source link at the end of the article content.

U.S. Federal Reserve Chair Jerome Powell said that a dollar-based CBDC could undercut the need for cryptocurrencies and stablecoins.

Federal Reserve Chair Jerome Powell, speaking at a congressional hearing, made a case for a U.S. central bank digital currency (CBDC). When asked about a potential U.S. digital currency, he said that it could reduce the need for private cryptocurrencies like bitcoin and stablecoins. Powell responded to several questions regarding cryptocurrencies, which is just one part in a broad general review of the market by the nation’s authorities.

Powell was speaking to The House of Representatives Financial Services Committee. The committee members asked if a CBDC would be better than having multiple stablecoins and cryptocurrencies, to which he responded in the affirmative.

He stated that the Federal Reserve officials would soon be examining a digital payments system through a discussion paper. The paper may be released in September, with Powell adding that it will be important in determining if the U.S. should issue a CBDC.

When asked if a CBDC would be better, Powell said,

“I think that may be the case and I think that’s one of the arguments that are offered in favor of digital currency. That, in particular, you wouldn’t need stablecoins, you wouldn’t need cryptocurrencies if you had a digital U.S. currency – I think that’s one of the stronger arguments in its favor.”

The Fed Reserve Chair also recommended that a regulatory framework be set up for stablecoins, if they are going to be a significant part of the payments universe. He does not seem to think that typical cryptocurrencies will come to act as a major means of payment.

Stablecoins are proving tough for regulators

Powell is not the only one promulgating a regulatory framework for stablecoins. The Bank for International Settlements (BIS), a global organization, has done the same and also sees the same challenges arising from stablecoin growth.

Obviously, governments are largely opposed to the idea of cryptocurrencies and stablecoins entering their payments system. But there is little that can be done about them on a large scale, given the decentralized nature. This is one of the reasons governments are so keen on CBDCs — they have some of the features of cryptocurrencies, but can also be kept under their control.

Stablecoins and the likes of Facebook’s Diem have governments worrying that there will be a breach of sovereignty. So there is this attempt to find a middle ground, which is proving to be challenging as the technology is still relatively new.

Nonetheless, governments are diverting all resources towards the matter of regulation. Centralized exchanges appear to be the current major target, with several countries targeting big-name exchanges. Binance appears to be taking the biggest hit so far, though others have also faced scrutiny.

The post Fed Chairman: Dollar-Based CBDC Could Reduce Need for Stablecoins appeared first on BeInCrypto.

 

Source: BeInCrypto

 


All In One Crypto App presents a unique dynamic crypto course that allows you to become a profitable and successful trader. Download Now
Loading...

Don't forget to share your review/suggestions for android app.

All In One Crypto App is an execution-only service provider. The material provided on this website is for information purposes only and should not be understood as an investment advice. Any opinion that may be provided on this page does not constitute a recommendation by All In One Crypto App or its agents. We do not make any representations or warranty on the accuracy or completeness of the information that is provided on this page. If you rely on the information on this page then you do so entirely on your own risk.es here
Loading...

Categories

Select Sub Category
category
6146cea56c1ca
1
1
Loading....

Reviews

All In One Crypto App

Made $234 profit with Free Signals from $50

This is the best useful app on my phone. Started trading with $50 and in 5 weeks I was up to $234 just with the free signals. I will recommend it to any new person that wants to try trading crypto. Link to Review

Asoluka Chimdindu

Free User
All In One Crypto App

Good Support

This app is one of the best for crypto currency trading signal for experts and beginal with free and premier with auto follow trading bot all the signal is excellent with accurate technical analysis and fundamental I really like the way they guide and support. Link to Review

olaplus olaplus

Premium User
All In One Crypto App

Accurate Trading Signals

I was premium member of this channel back in 2018 when there was no app. Thr signals were too good, more than 90% accuracy. Now with this app and newly introduced auto trading bot, it will be awesome. Too the moon. Link to Review

Yogesh Patil

Premium member
All In One Crypto App

Awesome and Accurate Signals

Very glad to use this app. The crypto signals was awesome and accurate with detailed explanation and visual information. The admin also helpful and nice. Link to Review

soon cheong

Free User
All In One Crypto App

User Friendly App

Signals are great. I love it. App also friendly to use… Nice job guys Link to Review

Olawunmi Dilureni

Premium Subscriber

Recent Comments