Bitcoin is much closer to gold than to dollar, says Jerome Powell | CryptoSlate

CryptoSlate

While Bitcoin and other cryptocurrencies are “not backed by anything,” they are still capable of serving as a “substitute for gold,” Jerome Powell, chairman of the United States Federal Reserve, stated today.

During a video conference hosted by the Bank for International Settlements, Powell initially voiced some criticism toward cryptocurrencies, calling them “an asset for speculation.” Powell said:

How To Get Free Crypto  

“Crypto assets are highly volatile—see Bitcoin—and therefore not really useful as a store of value. They’re not backed by anything. They’re more of an asset for speculation.”

However, he also pointed out that instead of competing with fiat, Bitcoin is currently moving into the territory of gold. He added:

“It’s essentially a substitute for gold rather than for the dollar.”

At the same time, he acknowledged that stablecoins—crypto tokens pegged to real-world currencies—are “an improvement” over crypto assets.

“To an extent, a stablecoin is backed by sovereign currencies of leading nations, that is certainly an improvement over crypto assets, I would say,” Powell noted, adding, “But nonetheless, where does the credibility come from? It comes from that sovereign currency that is the backstop.”

Earlier today, Bloomberg reported that the Federal Reserve Bank of Boston and the Massachusetts Institute of Technology are getting ready to reveal the results of their research into central bank digital currencies (CBDCs)—or a “digital dollar.”

Speaking about CBDCs today, Powell explained that the Fed potentially could develop one in the future, but it would require strict regulation, a lot of research, and a careful review—just like any other stablecoin.

“Stablecoins may have a role to play with appropriate regulation, but that role will not be to form the basis of a new global monetary system,” Powell said. “A global currency governed by the incentives of a private company is something that will deserve and will receive the highest level of regulatory expectations.”

As CryptoSlate reported, Powell has recently also stated that CBDCs can function alongside fiat money in the future.

Get an edge on the cryptoasset market

Access more crypto insights and context in every article as a paid member of CryptoSlate Edge.

Real-time charts

Price snapshots

More context

Join now for $19/month Explore all benefits

Like what you see? Subscribe for updates.

Go to Source
Author: Liam Frost


Recommended Crypto Services, Products and Strategies:

The first thing any crypto investor needs is is a reliable and secure Crypto Wallet.  Whether you’re looking for an online wallet, hardware wallet, desktop or mobile wallet, Crypto Renegade provides you with all the Best Crypto Wallets in each category.

Best Crypto Wallets Banner

When you’re ready to buy more crypto, or exchange your coins for others, Crypto Renegade’s list of the Best Crypto Exchanges has you covered.  The Crypto Exchanges recommended here offer everything from simplicity and convenience to advanced trading platforms and profit sharing. 

Best Crypto Exchanges Banner

If you want to learn more about the methods and tools that can be used to find Great Crypto Projects, then be sure to check out Crypto Renegade’s strategy for How To Find The Best Cryptocurrency.

Crypto Strategy Banner

For those people that don’t have any money to invest right now, or just want to understand the technology a bit more, you’ll definitely want to check out Crypto Renegade’s Free Crypto Strategy and start collecting Free Coins today!

Free Crypto Banner

What do you think about cryptocurrency? Do you have any questions about it? Be sure to leave a comment below.

This site uses Akismet to reduce spam. Learn how your comment data is processed.