Federal Reserve Chairman Jerome Powell Says Cryptocurrencies Are ‘Vehicles for Speculation’ – Regulation Bitcoin News


The Federal Reserve chairman believes that cryptocurrencies are “really vehicles for speculation” and “No one is using them for payments.” He then compared crypto to gold. His comments about cryptocurrency followed Coinbase’s direct listing on Nasdaq.

Fed Chair Powell Thinks Crypto Is for Speculation

Federal Reserve Chairman Jerome Powell talked about cryptocurrency in an interview with The Economic Club of New York on Wednesday. The event took place amid Coinbase’s IPO via a direct listing on Nasdaq.

How To Get Free Crypto  

With the rising popularity of bitcoin and cryptocurrencies, he was asked if he was worried about the impact they may have on the economy and the ability for people to use them as payments. Firstly, “We think of them more as crypto assets,” Powell said, adding:

What people call cryptocurrencies, they’re really vehicles for speculation. No one is using them for payments, for example, like the dollar.

The Fed chair proceeded to compare cryptocurrency to gold in terms of how it is used for speculation. “For thousands of years, human beings have given gold a special value that it doesn’t have,” he said. “Nonetheless, for thousands of years, they have done that.” Noting that bitcoin and cryptocurrencies “are much more like that,” Powell emphasized, “They’re not really being actively used as payment.”

Powell’s comments about cryptocurrency echoed the statements by the new Treasury Secretary Janet Yellen. She said in February that bitcoin was a “highly speculative asset.” She also noted that it is not “widely used as a transmission mechanism” and is an “extremely inefficient way of conducting transactions.”

In February, Powell said that the digital dollar is a “very high priority project for us.” Last month, the Fed chair said cryptocurrency is “essentially a substitute for gold, rather than for the dollar.” He emphasized: “the public needs to understand the risks. The principal thing is there’s the volatility. There’s also the outsized energy requirement for mining, and the fact that they’re not backed by anything.”

Coinbase Banner  

What do you think about what Fed Chair Powell said about cryptocurrency? Let us know in the comments section below.

Tags in this story

Image Credits: Shutterstock, Pixabay, Wiki Commons

Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.

Read disclaimer

Go to Source
Author: Kevin Helms

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.