Federal Reserve Chairman Jerome Powell has confirmed that the US has no plans to ban Bitcoin and cryptocurrencies.
On Thursday afternoon, during the Treasury and Federal Reserve’s pandemic monitoring hearing, Federal Reserve Chairman Jerome Powell confirmed that the US has no plans to ban Bitcoin and cryptocurrencies.
During the hearing, House Representative Ted Budd (RN.C) asked Chairman Powell about the state of inflation in the United States. Powell deflected inflation issues, claiming that inflation in this country was due to the often repeated supply chain crises caused by the government’s pandemic response.
Indeed, the chairman said the Fed’s hands are tied when it comes to inflation and that relief will come. Powell suggested that inflation should fall “in the first half of next year”.
Ted Budd then quoted Powell’s earlier comments on central bank digital currencies and their impact on stable coins, bitcoin and other cryptocurrencies. Budd quoted Jerome Powell from a July hearing: “You wouldn’t need stable coins, you wouldn’t need cryptocurrencies if you had US digital currency.”
Budd continued, “Mr. Chairman, is it your intention to ban or restrict the use of cryptocurrencies as we see it in China?”
Jerome Powell replied “No” and went on to explain how he had pronounced himself wrong at the time.
Budd repeated his question: “But you have no intention of banning it?”
“No intention of banning them,” Powell replied, further explaining that stable coins should be included in the regulatory framework.
For many bitcoiners, listening to such exchanges in Congress is frustrating because the Fed’s understanding of the differences between bitcoin and cryptocurrencies leaves much to be desired.
However, the incessant grouping of Bitcoin with other cryptocurrencies by the Fed and members of Congress means that we can safely assume that Chairman Powell has spoken to Bitcoin as well.
From a regulatory point of view, Bitcoiners and politicians still have a lot to do in order to precisely represent and define their interests and then to make an informed decision as to whether and to what extent Bitcoin should be regulated.
In any case, US regulation of Bitcoin is still an embrace of technology that couldn’t be more different from China’s approach from a geopolitical perspective. China’s loss is America’s gain.
The views and opinions expressed are those of the author and do not necessarily reflect those of Nasdaq, Inc.