Fed’s Powell has no intent to ban Bitcoin or crypto

Federal Reserve Chairman Jerome Powell believes the federal authorities wants to manage the cryptocurrency market, however {that a} blanket ban on Bitcoin (BTC) and different digital property just isn’t within the playing cards.

Talking in response to a query from Republican Consultant Ted Budd of North Carolina, Powell clarified {that a} China-style ban on digital property was not one thing he’s contemplating. Rep. Budd’s query got here in response to Powell elevating doubts in regards to the regulatory standing of stablecoins and the central financial institution’s ongoing deliberations round a so-called “digital greenback.” (In Powell’s view, a central financial institution digital foreign money, or CBDC, might carry out most of the features of stablecoins and cryptocurrencies however with out the regulatory danger.)

“Stablecoins are like cash market funds [and] like financial institution deposits however they’re, to some extent, exterior the regulatory perimeter and it’s acceptable they be regulated,” he stated. “Identical exercise, similar regulation.”

Associated: International locations representing over 90% of worldwide GDP are exploring CBDCs

A central financial institution digital foreign money has been on the Fed’s radar for a while, however policymakers stay undecided on whether or not to pursue the undertaking. Within the meantime, the central financial institution has commissioned a number of analysis reviews on the benefits and potential roadblocks of issuing a CBDC.

Powell oversees the central financial institution’s Federal Open Market Committee, which is liable for setting United States financial coverage. Earlier this month, the Committee determined to depart its current stimulus packages intact however stated that the pandemic-induced bond buy program may very well be winding down quickly. The warning seems to have put some downward strain on danger property, which incorporates shares and cryptocurrencies.