FED Chairman Speaks About Bitcoin

Today, the Bank for International Settlements (BIS) held an event for digital currencies. Federal Reserve Chairman Powell was among the participants of the event. Powell made various statements regarding digital dollars and cryptocurrencies. 

Powell had previously made statements stating that "they are in no hurry to be the first" on CBDCs, namely "central bank digital money orders". He repeated this at this event. In addition, Powell stated that the Fed is continuing its trials with the digital dollar. 

Bitcoin and cryptocurrency reviews “Our work does not provide other private currency applications such as Bitcoin,” Powell said. Also, “Crypto assets are mostly for speculation; therefore, they cannot be used specifically as a means of payment. " said. 

Powell also expresses the following:

 "CRYPTO ASSETS LIKE MUCH GOLD THAN DOLLARS." "HOWEVER, SPECIAL CRYPTO CURRENCIES HAVE NOT WORKED WELL AS A VALUE STORE." 

As with Yellen, Powell appears to have caused a negative market fly. After Powell's announcement, the BTC / USD parity dropped by almost $ 1,000. 

However, despite all the controversy, both Powell and Bitcoin's biggest advocates agree on the status of cryptocurrency as a new form of gold. Stablecoins Powell, together with BIS managing director Augustin Carstens and German Federal Bank president Jens Weidmann, after reviewing stablecoins in relation to central bank digital currencies, CBDCs: 

"I CAN ABSOLUTELY SAY AN IMPROVEMENT FOR STABLECOINS TO THE EXTENT SUPPORTED BY THE SOURCING CURRENCIES OF THE LEADING COUNTRIES." “BUT WHERE DOES THE RELIABILITY COME FROM? BEHIND THE SOVEREIGN CURRENCY. " 

While he said that fiat currencies were "issued with public interest in mind", he also emphasized that stablecoins will constitute a basis for the financial system in the future.