Will the US Ban Crypto? Fed Chairman Jerome Powell Announced!

According to Chairman Jerome Powell, the United States Federal Reserve will not follow China’s lead in banning cryptocurrencies.

US Federal Reserve Chairman Jerome Powell made it clear at a two-hour meeting Thursday by the House Financial Services Committee that he has no plans for a Chinese-style crackdown on cryptocurrencies.

Asked by crypto advocate Ted Budd from North Carolina whether the Fed wants to ban or restrict the use of digital currencies, Powell flatly denied this; He stated that he has no intention of banning cryptocurrencies, but that cryptocurrencies, and stablecoins in particular, need more regulatory oversight:

“There’s no intention of banning them, but you know, stablecoins are like money market funds and bank deposits, but they work to some extent outside the regulatory environment. It is only natural that these need editing. Same activity, same arrangement.”

Currently, the Federal Reserve is still evaluating the benefits and costs of creating a central bank digital currency. A report on the “digital dollar” is expected to be published in the near future.

The Federal Reserve is still weighing the pros and cons of creating a central bank digital currency. Powell’s statement came just two days after the Fed requested Congressional consultation and legislative support to develop the digital dollar. Some members of the crypto community think that the creation of a CBDC in the US will lead to specific crypto bans as recently seen in China, but Powell’s statement suggests otherwise.

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