Federal Reserve Chair Powell: Bitcoin Shows ‘Staying Power’ as Asset

The conversation about crypto as an asset class and the FED with its interest rate has been a point of interest for the crypto community since the massive adoption of the crypto space. The recent comment on the same has been yesterday on Capitol Hill by Federal Reserve Chair Jerome Powell while presenting at the Semiannual Monetary Policy Report held by the Republican-led House Financial Services Committee and led by Patrick McHenry (R-NC).

According to Powell, “We do see payments stablecoins as a form of money, and in all advanced economies, the ultimate source of credibility in money is the central bank. We believe that it would be appropriate to have quite a robust federal role in what happens in stable coins going forward.”

Taking the side of the possibilities that crypto brings to the table, during the hearing, Powell had also mentioned that it might be beneficial for the U.S. central bank if they play a “robust federal role” and oversee the stablecoins. Stablecoins occupy a noticeable sector of the overall crypto ecosystem. A sector that the legislators are trying to bring about the rules for.

Read More: Why Stablecoins are ideal in the current market?

Powell also remarked that digital assets, like Bitcoin, come with “staying power.” While responding to the queries on stablecoins by Maxine Waters (D-CA), Powell mentioned that the technology of the stablecoins, where the tokens are pegged to the price of a sovereign currency like the dollar and are issued by private companies, are to be set in a way where they have strong federal oversight.

Powell had been talking about the stablecoins since 2021. Back then, he said that stablecoins has the possibility to become a worthy part of the “payments universe,” as opposed to any other type of crypto assets. Since then, there have been various conversations around the same, and as per the recent presentation, if a positive consensus is reached, there would be much more advanced rules set for stablecoins.

Additional Read: What is the best time to trade in crypto market?

Source: Decrypt