Fed’s Powell ‘legitimately undecided’ on Central Bank Digital Currency

The remark from Powell, who also said bitcoin and other cryptocurrencies have “completely failed” to become a common means of payment, was intended to clarify comments from a day earlier that some observers read as something of an endorsement of launching a Fed-backed CBDC, which is currently under study.

Powell, in related testimony on Wednesday to the House Financial Services Committee, had said one of the stronger arguments for the Fed to set up a digital currency is that it could undercut the need for private alternatives such as cryptocurrencies and stablecoins.

But, in reply to a question from Senator Patrick Toomey of Pennsylvania whether that signaled a change in his tone regarding the development of a Fed CBDC, he said he was merely answering a lawmaker’s question about whether a Fed CBDC would be a more viable alternative than having multiple cryptocurrencies or stablecoins emerge in the payments system.

Powell’s remarks on the matter reflect the unease and ambiguity among Fed officials about developing a digital version of the dollar even as a number of other central banks are pressing ahead with their own CBDCs. A number of Fed officials recently have openly questioned the need for one, and Powell has repeatedly said the Fed is not eager to be first with a CBDC but to get it right, if it goes down that road at all.

Moreover, Powell in Thursday’s testimony sharpened his criticism of cryptocurrencies like bitcoin as a common payment means, while saying stablecoins, which attempt to peg their value to the dollar, pose separate regulatory challenges.

“With cryptocurrencies, it’s not that they didn’t aspire to be a payment mechanism, it’s that they have completely failed to become one except for people who desire anonymity, of course, for whatever reason,” he told Senator Cynthia Lummis of Wyoming.

“Really the question is stablecoins, and my point with stablecoins is they’re like money funds, they’re like bank deposits, and they’re growing incredibly fast but without appropriate regulation,” Powell said. “And if we’re going to have something that looks just like a money-market fund or bank deposit … we really ought to have appropriate regulation and today we don’t.”

Fed officials will be broadly examining the digital payments universe in a discussion paper that Powell said could be released in early September. Powell described that to House lawmakers as a key step to accelerate the Fed’s efforts to determine if it should issue a CBDC.

For a look at all of today’s economic events, check out our economic calendar.

(Reporting by Ann Saphir and Dan Burns; Editing by Chizu Nomiyama)

Source link

0 0 votes
Article Rating

Notifier de
0 Commentaires
Commentaires en ligne
Afficher tous les commentaires
Reset Password

Avertissement sur les risques :

Le trading peut vous exposer à des risques de pertes supérieures aux dépôts et ne convient qu’à une clientèle avisée ayant les moyens financiers de supporter un tel risque. Les CFD sont des instruments complexes et présentent un risque élevé de perte rapide en capital en raison de l’effet de levier. Entre 74 et 89% des comptes de clients de détail perdent de l’argent lors de la négociation de CFD. Vous devez vous assurer que vous comprenez comment les CFD fonctionnent et que vous pouvez vous permettre de prendre le risque élevé de perdre votre argent. Ce site n’est en aucun cas une offre de conseil en investissement ni une incitation quelconque à acheter ou vendre des instruments financiers. Trader le Forex et/ou les CFD’s implique un niveau de risque élevé, et peut ne pas être approprié car vous pouvez subir des pertes supérieures à votre dépôt. L’effet de levier peut être en votre défaveur.

Vous devez être conscient et avoir une compréhension complète de tous les risques associés au marché et au trading. Le site peut être amené à produire des commentaires d’ordre général, ce qui ne constitue pas des conseils en investissement et ne doit pas être interprété comme tel.

Veuillez recourir aux conseils d’un conseiller financier extérieur. Le site décline toute responsabilité pour les erreurs, inexactitudes ou omissions et ne garantit pas l’exactitude ou le caractère complet des informations, textes, graphiques, liens ou autres éléments contenus dans cette documentation. Toute information et toute mise à disposition sur le site ont un caractère privé.