By | January 12, 2022

Key Takeaways

  • Jerome Powell acknowledged in his renomination listening to at the moment that the Federal Reserve’s CBDC report was forthcoming inside weeks.
  • Powell confronted skepticism towards stablecoins and cryptocurrencies from a lot of senators.
  • The report, in keeping with Powell, focuses much less on taking robust positions and extra on asking the best questions.

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In Federal Reserve Chair Jerome Powell’s renomination listening to earlier than the Senate Banking Committee Listening to at the moment, Powell mentioned {that a} Fed report on central financial institution digital currencies was anticipated within the “coming weeks.”

A Lengthy-Awaited Report

Federal Reserve Chairman Jerome Powell testified at his renomination listening to earlier than the Senate Banking committee at the moment that the central financial institution’s highly-anticipated report on CBDCs and stablecoins was quickly forthcoming.

Powell, whom President Joe Biden lately renominated to go the U.S. central financial institution for an additional four-year time period, assured Senator Mike Crapo (R-I) on the Senator’s urgent that the long-awaited report on central financial institution digital currencies can be printed “inside weeks.” 

Senator Crapo pushed Powell as to why the Fed had not launched its report on central financial institution digital currencies because it mentioned it could, citing delays within the Fed’s publication. Powell responded by saying that the “report actually is able to go, and I might anticipate we are going to drop it—I hate to say it once more—within the coming weeks…”

Furthermore, the Fed Chair gave some particulars as to what Congress and the general public may anticipate from the approaching report, explaining that it was extra an “train in asking questions and in search of enter from the general public reasonably than taking quite a lot of positions on varied points.” Nonetheless, Powell testified, that the Fed does “take some positions.”

Whereas the nomination listening to was predominantly involved with broader points within the economic system, reminiscent of inflation and rates of interest, cryptocurrency remained a theme. In his opening assertion, Senator Sherrod Brown (D-OH) warned of the hazards of cryptocurrencies to the U.S. economic system. Senator Brown mentioned that the Fed must “take significantly the systemic dangers that threaten our financial progress like cryptocurrencies and stablecoins.”

This was not the primary time Senator Brown expressed his trepidation in direction of cryptocurrencies and stablecoins. Final month, in a Senate Banking Committee Listening to devoted to stablecoin dialogue, he known as cryptocurrency a “new fantasy economic system” and warned that stablecoins made it simpler for individuals to danger their cash on risky and probably fraudulent crypto property. 

The Fed’s report on a central financial institution digital foreign money has been lengthy awaited. In February final 12 months, Jerome Powell known as a U.S. digital greenback a “excessive precedence.” 

Disclosure: On the time of writing, the writer of this piece owned BTC, ETH, and several other different cryptocurrencies. 

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