Jerome Hayden Powell, Chairman of the Board of Governors of the Federal Reserve System

No intention to ban or limit cryptocurrencies in US ─Fed Chair

*Jerome Powell, Chairman of the Board of Governors of the Federal Reserve System, has informed the US lawmakers that Fed has no intention to ban or limit the use of cryptocurrencies in the country

Alexander Davis | ConsumerConnect

The United States (US) Federal Reserve (Fed) has disclosed that there is no intention to ban or limit the use of cryptocurrencies in the American country.

ConsumerConnect reports the Federal Reserve System is the central banking system of the United States of America, which was  created on December 23, 1913.

It was gathered Jerome Hayden Powell, Chairman of the Board of Governors of the Federal Reserve System, who confirmed this development during a hearing before the US House of Representatives Financial Services Committee Thursday, September 30, 2021, stated that he has no intention to ban or limit the use of cryptocurrencies, agency report said.

Commenting on the regulation of stablecoins, Powell also talked about cryptocurrency, stablecoins, and Central Bank Digital Currencies (CBDC) at the hearing before the House Financial Services Committee.

The main focus of the meeting, however, was the Federal Reserve’s and Treasury’s responses to the COVID-19 pandemic.

Treasury Secretary Janet Yellen spoke for the Treasury Department, according to report.

US Congressman Ted Budd from North Carolina told Powell: “In a July hearing before this committee, you were asked about CBDCs or the central bank digital currencies and their impact on stablecoins and other cryptocurrencies, and you stated, ‘You wouldn’t need stablecoins, you wouldn’t need cryptocurrencies if you had a digital US currency.’”

Budd further stated: So, Mr. Chairman, as a matter of policy, is it your intention to ban or limit the use of cryptocurrencies like we are seeing in China.

Powell immediately replied: “No.”

The Fed Chairman quickly admitted that he “had misspoken” earlier when he said, “you wouldn’t need cryptocurrencies, saying, “take the word cryptocurrency out of that sentence.”

Rep. Budd felt that Powell’s reply regarding the banning of cryptocurrencies was not clear enough so he asked again.

The lawmaker asked: “But, no intention to ban?” and Powell confirmed that there is no intention to ban crypto in the country’s economy.

As regards stablecoins, Fed Chairman Powell also said that stablecoins are like money market funds.

“They are like bank deposits, but they are to some extent outside the regulatory parameter and it’s appropriate that they be regulated, same activity, same regulation.”

The Wall Street Journal Friday as well reported that the Joe Biden administration is seeking to regulate stablecoin issuers as banks in the US economy.

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