In the case of stablecoins, greater regulatory monitoring is required, according to the chairman of US Federal Reserve.
The new infrastructure bill in the United States may have raised some concerns in the cryptocurrency world. However, the Chairman of the Federal Reserve in the United States has said that cryptocurrency would not be outlawed.
The US Federal Reserve Chairman Jerome Powell stated that cryptocurrency will not be banned. He, however, argued that stablecoins require additional regulatory control.
US Federal Reserve has no plans to ban cryptocurrency
Powell spoke about cryptocurrency and stablecoins at a two-hour hearing of the Financial Services Committee on September 30.
Representatives had the opportunity to question Treasury Secretary Janet Yellen and Federal Reserve Chairman Jerome Powell about the Treasury Department’s and Federal Reserve’s pandemic response at the meeting.
Several issues about cryptocurrency were also discussed during the meeting. Representative Ted Budd, a long-time crypto supporter, questioned Powell on his comments on the growth of Central Bank Digital Currency (CBDC). Furthermore, he requested clarity on his claim that a CBDC may eliminate the need for private crypto and stablecoins.
Powell answered with a resounding “No” to Mr Budd’s direct question about the chairman’s intentions to prohibit crypto. He went on to say, “No intention to ban them.”
It is in place to note that a central bank digital currency (CBDC) is a virtual representation of a nation’s or region’s fiat currency. It is a digital token or electronic record of the official currency that is issued and regulated by the monetary authority.
Jerome Powell’s comments unanticipated
Mr Powell’s comments came just two days after he asked a question in Congress about the digital dollar’s growth.
Some anticipated that after the development of the US CBDC, the chairman of the Federal Reserve and the government would outlaw private crypto. However, given Powell’s recent remarks, this is unlikely to happen.
Modernizing internet networks in the US on cards
It is pertinent to mention here that The Democratic-controlled House of Representatives is debating whether to vote on a $1 trillion bipartisan infrastructure plan passed by the Senate in August to modernize America’s roads, bridges, as well as internet networks.
The package, which contains $550 billion in additional expenditure and the remainder of the $1 trillion in already authorized money, is one of President Joe Biden’s top domestic commitments.
Bitcoin craze continues but many countries ban it altogether
With the Bitcoin craze sweeping the globe, everyone wants to join in on the boom. The world’s largest cryptocurrency, Bitcoin, is now selling at a price of Rs 33 lakh, while Ethereum, the second-largest cryptocurrency, is trading at around Rs 2.3 lakh.
While the system in India allows these volatile currencies to breathe, some nations have slammed their doors to cryptocurrencies and have put a strict ban on these digital tokens.
Egypt, Turkey, Indonesia, Bolivia and China are the five nations that have imposed embargoes on cryptocurrency.
