Jerome Powell on Bitcoin Ban: No Intention to Prohibit Crypto Proceedings

Federal Reserve Chairman Jerome Powell testified before the House Financial Services Committee on Thursday and spoke about the matters related to the economy, including crypto,  and the implication of the Coronavirus pandemic. Powell responded to the question raised by Ted Budd, a Republican representative in regards to the state of inflation in the United States. Powell did not answer directly about the existing state of inflation however the chairman did state that the relief is bound to come soon and that he believes that inflation will reduce significantly in the first half of the next year.

Powell: Stablecoins and Other Crypto Assets Needs a Regulatory Structure

In an engrossing discussion that was held between Republican representative Ted Budd and Jerome Powell, Budd cited Powell’s initial comments on CBDC and their effect on various cryptocurrencies. Powell reiterated in response to these questions that he is not considering imposing an outright ban on Bitcoin, like China. Powell had previously spoken in support of CBDC citing that they bear no regulatory risk and can work as efficiently as stablecoins in the long run.

A central bank digital currency is one of the most significant tasks that has been on the radar of the feds for a long time. The policymakers are still not sure on how to pursue the CBDC undertaking, however, the central bank has assigned several research projects that will be accumulating important data on the upcoming challenges and advantages of issuing a CBDC and furnish the organization with adequate data to begin working with.

From a regulatory perspective, it seems that there is a lot of work to be done in terms of devising statutory rules and policies that would encourage the trade of cryptocurrencies with ease and organization. Apart from that, the bitcoiners and politicians are required to align their interests in a way that determines a precise strategy regarding the extent of regulation that will be levied on cryptos.

Jerome Powell is the 16th Chair of the Federal Reserve and was appointed to this position in 2018. He had received his nomination to the boards of governance in 2012 from the former president of the United States Barack Obama. Powell is in charge of supervising the Federal Open Market Committee, a unit that is responsible for setting up the monetary policy for the United States.