Cryptocurrency jerome powell

US Federal Reserve chief Jerome Powell turned up the heat on cryptocurrencies on Thursday, saying they pose risks to financial stability, and indicating that greater regulation of the increasingly popular electronic currency may be warranted. The Treasury Department, meanwhile, flagged its concerns that wealthy individuals could use the largely unregulated sector to avoid tax and said it wanted big crypto-asset transfers reported to authorities. Powell underlined cryptocurrency risks in an unusual video message that also laid out a clearer timetable as the Fed explores the possibility of adopting a digital currency of its own. While highlighting the potential benefits of advances in financial technology, Powell said cryptocurrencies, stablecoins and other innovations "may also carry potential risks to those users and to the broader financial system.

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Content:

• North Bay banks, credit unions wary of Fed digital currency proposal
• Price volatility limits usefulness of crypto for payments, Powell says
• Challenging times for Bitcoin, cryptocurrencies ahead as US Fed signals stricter regulations
• Bitcoin recovery wobbles as US hints at aggressive interest rate hikes
• Powell Says Fed Report on Crypto and Central Bank Digital Currency Is 'Ready to Go'
• Why Jerome Powell’s Policies Are Bullish For Bitcoin
• What would Jerome Powell’s second term mean for crypto?
• Crypto market awaits Powell's testimony amid inflation worries
• Bitcoin erases some of week's losses as Fed Chair Jerome Powell talks crypto
• Powell Says Fed Will Release Crypto Report 'Within Weeks'

WATCH RELATED VIDEO: Powell Says Fed Has 'No Intention' to Ban Cryptocurrencies

North Bay banks, credit unions wary of Fed digital currency proposal

Bitcoin's price surged this month as large companies including Elon Musk 's Tesla and Mastercard voiced support for its potential as a payments option in the future. What is clear is the cryptocurrency's reputation for volatility remains intact.

What is less clear are the exact reasons for the latest price drop—and if or when it will recover. The downward shift came the same day as the Federal Reserve Chair Jerome Powell warned Bitcoin was unpredictable and "not really useful as a store of value. He continued: "They're more of an asset for speculation. So they're also not particularly in use as a means of payment. It's essentially a substitute for gold rather than for the dollar. And I think with crypto assets the public needs to understand the risks.

Elaborating on those perceived risks about digital currencies, Powell had listed the price volatility, the "outsized" energy requirement for mining - a process used to create the coins with computing power - and "the fact that they are not backed by anything. He said stablecoins—which are digital currencies that claim to have a more stable value because the price is tied to another asset such as the dollar of the price of gold—could play a role in future financial systems, but only with proper governance.

Powell said: "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. Charles Hayter, the CEO of market tracker CryptoCompare, told Newsweek via email on Tuesday that volatility appeared to be leveling off but, referencing the unstable nature of the prices, a "pattern of acceleration and deceleration in the space is typical.

Hayter said: "There are two clear thematic trends at play that have a direct underlying commonality—crypto markets and traditional markets colliding.

On this point, we can firmly say that the interest is from product providers globally, and wealth managers who are seeing strong demand from clients to hedge the ever apparent realization that fiat is a mirage. Read more. Newsweek magazine delivered to your door Unlimited access to Newsweek. Unlimited access to Newsweek.

Price volatility limits usefulness of crypto for payments, Powell says

Thanks for contacting us. We've received your submission. The Federal Reserve and the Treasury Department are turning up the heat on cryptocurrency, signaling a crackdown could be coming after several days of volatility in the sector. He also distinguished between volatile cryptocurrencies and so-called stablecoins, which are tied to the value of other currencies such as the US Dollar. Powell also noted that the Fed is exploring how and whether cryptocurrencies could improve the current US financial system. He said the Fed has been exploring whether it should establish cryptocurrency of its own, called a central bank digital currency, or CBDC. He said the Fed will publish a discussion paper this summer on the benefits and risks of establishing a CBDC, and will seek public comment.

Challenging times for Bitcoin, cryptocurrencies ahead as US Fed signals stricter regulations

Editor's Note: With so much market volatility, stay on top of daily news! Get caught up in minutes with our speedy summary of today's must-read news and expert opinions. Sign up here! Kitco News - Leading global central banks, including the Federal Reserve, said that they are not threatened by the growing advancement of digital currencies and stable coins. Powell described bitcoin as a speculative asset that is not backed by anything. They are not backed by anything. It is a speculative asset that is essentially a substitute for gold rather than for the dollar.

Bitcoin recovery wobbles as US hints at aggressive interest rate hikes

As an initial step, the Fed released a paper on Jan. But while the US studies the matter, other central banks around the world are moving ahead. Most notable is China, which already has rolled out a digital yuan and will tout its use as a payment system at the upcoming Beijing Olympics. Governments are considering creating digital currencies to compete with Bitcoin and other largely unregulated cryptocurrencies that have gained popularity as an alternative payment method to the traditional banking system. Proponents of a digital dollar say it would be more stable than cryptocurrency because it would be backed by the Fed and it could offer new benefits, like the ability to send government stimulus and other payments instantly to people without bank accounts through a smartphone app or a card that could be loaded at retail locations.

Powell Says Fed Report on Crypto and Central Bank Digital Currency Is 'Ready to Go'

Private cryptocurrencies — including stablecoins — and a central bank digital currency would be able to coexist, Federal Reserve Chair Jerome Powell said Tuesday. He was responding to a question posed by Sen. Pat Toomey during a confirmation hearing for a second term as head of the central bank. The comments appeared to be a shift in tone from July, when Powell said he saw no need for cryptos if the central bank were to issue its own CBDC. Such cryptos include stablecoins, a type of crypto pegged to an asset such as a fiat currency or a precious metal.

Why Jerome Powell’s Policies Are Bullish For Bitcoin

The Federal Reserve's much-anticipated crypto report is "ready to go" and will come out "in the coming weeks," according to Fed Chair Jay Powell. The remarks came during Powell's re-nomination testimony on Tuesday in front of the Senate Banking Committee, in response to a question about the status of the report from Idaho Senator Mike Crapo. The report is likely to focus on CBDCs, or central bank digital currencies, which Powell has said the Fed is looking into ever since China launched its own digital yuan. But it sounds possible the report will also look at other crypto issues beyond just CBDCs. Powell also said the report will seek input from the public, and it remains unclear if the report will offer any actionable guidance. Powell has frequently chimed in on CBDCs. In February of last year, Powell was being particularly tight lipped about CBDCs, but did say the Fed was looking "very carefully" at a digital dollar. While Powell may have held his cards close to his chest when it comes to CBDCs, he has more freely opined on stablecoins.

What would Jerome Powell’s second term mean for crypto?

The U. Testifying before the House Committee on Financial Services, Federal Reserve chairman Jerome Powell was asked if the central bank is considering following in the footsteps of China, which has recently implemented a ban on all crypto transactions, causing a market-wide crash on the same day. Delayed quote.

Crypto market awaits Powell's testimony amid inflation worries

The drop follows a US Federal Reserve statement again indicating an impending interest rate rise. At a press conference last night, Federal Reserve chair Jerome Powell hinted that there could be an aggressive string of interest rate rises that will begin in March. Asia-Pacific markets fell to their lowest level in 15 months, while the London stock market has opened lower, with the blue-chip FTSE index down 0. The crypto market is rarely in a more fearful state than right now. Historically, the market has rewarded holders for their perseverance during difficult market conditions, though.

Bitcoin erases some of week's losses as Fed Chair Jerome Powell talks crypto

On Tuesday, Chairman of the Federal Reserve Jerome Powell told Congress that the government's upcoming report on cryptocurrencies would be unveiled "within weeks. The hearing is expected to zero in on inflation and unemployment, while also diving into Powell's perspectives on the regulation of stablecoins and central bank digital currencies. Crypto players are increasingly watching the impending report on a central bank digital currency with interest. Last September, several members of Congress wrote a bipartisan letter to Powell asking about the timeline for a discussion paper on central bank digital currencies, as well as the Fed's coordination with other regulators on digital assets like cryptocurrencies. In the fall, the Fed's report on central bank digital currencies or digital dollars was delayed due to a competing focus on monetary policy.

Powell Says Fed Will Release Crypto Report 'Within Weeks'

Crypto enthusiasts and members of the financial industry are eagerly awaiting the Fed's research, which was initially slated to be released over the summer, for hints on where policymakers stand on whether the United States should issue a CBDC. Powell said on Wednesday that no decision has been made and that the priority is for the U. The ultimate test that will apply when assessing a CBDC, he told reporters, is if there are "clear and tangible benefits that outweigh any costs and risks. The Fed chief said the discussion paper, announced in May, will tackle some of the public policy issues surrounding a CBDC and set the stage for the central bank to seek feedback on the issue from lawmakers and the public, Powell said.