According to You2day on the 22nd (local time), Powell pointed out at a virtual event hosted by the International Settlement Bank (BIS) on the same day and announced that he considered private cryptocurrencies such as Bitcoin and Ethereum as speculative tools.
For popular stablecoins such as Tether and the USC Coin (USDC), Powell argued that they could not be “good substitutes” for the existing monetary system. “Private stablecoins will not be suitable substitutes for a sound monetary system based on central bank currency,” he said.
Powell reaffirmed its position that the Fed will not be in a hurry regarding the digital dollar it is developing, and said, above all, it has not been clearly determined whether a central bank digital currency (CBDC) is needed.
“We don’t have to rush digital dollar development or bring it to market first,” he said. “The Fed doesn’t want to destabilize the existing two-tier system. We don’t want to compete with banks for financing.
Powell explained to the digital dollar that efficiency is the main advantage. At the same time, however, they also expressed concerns about cyber risks and illegal use of money laundering and terrorist funds.
Powell’s position is contrary to the arguments of cryptocurrency advocates that consider private cryptocurrencies such as bitcoin as a new value storage and payment method, and has the potential to negatively affect the cryptocurrency industry.
*Image source: Bloomberg TV