Fed Chair Jerome Powell’s latest comments on stablecoins and a CBDC continues his extremely slow ascent into becoming a crypto bull.
- Jerome Powell Stablecoins
- Fed Chairl On Wyoming Banks
Jerome Powell Stablecoins
FED CHAIR JEROME POWELL JUST SAID if the Federal Reserve continue exploring a central bank digital currency (CBDC), they would coexist with private issued stablecoin!
— James C. (@jcbaby0) January 11, 2022
During his reconfirmation hearing, Fed Chair Jerome Powell was pressed by crypto-friendly senator Pat Toomey on his thoughts about CBDCs, and how they could coexist with privately-issued stablecoins (think: USDC/USDT/UST).
“If Congress were to authorize the Fed to pursue a central bank digital dollar, is there anything about that that ought to preclude well-regulated, privately-issued stablecoins from coexisting with a central bank digital dollar?” asked Toomey.
Powell responded with a simple, “No, not at all.”
The Fed Chair — whose reconfirmation considered very likely — has said in the past that he believes there would be no need for Bitcoin with a CBDC. However, he clearly doesn’t feel the same way about other stablecoins who could theoretically compete with the still theoretical American CBDC.
Powell’s most recent comments follows another recent positive-ish comment from the chair. Back in December, Powell said that he doesn’t believe there’s a “financial stability concern” around crypto. This runs in stark contrast to one of his previous comments where he called crypto “a failure.”
Powell On Wyoming Banks
Powell was also pressed by Toomey’s colleague Senator Cynthia Lummis (R-Wyo) on why the Fed has yet to approve Wyoming bank applications to become special banking entities that can do transactions with crypto while performing conventional banking services.
“Please throw me a lifeline here and help me support your nomination,” pleaded Lummis. “As you know Chairman Powell, I’m terribly concerned about the manner in which Wyoming’s Special Purpose Depository Institutions are being treated by the Federal Reserve, as we’ve discussed.”
Powell didn’t shoot Lummis’ request outright.”… it’s just hugely precedential, that’s really why we take our time with it.”