Jerome Powell on Crypto 💸

Table of Contents

Jerome Powell on Crypto

Chairman of the Federal Reserve, Jerome Powell, said on Monday that cryptocurrencies are an unreliable store of value and that the Federal Reserve has no plans to launch a rival digital currency.

During a virtual panel hosted by the Bank for International Settlements, Powell said, “They’re highly volatile and therefore not useful stores of value, and they’re not backed by anything. It’s more a speculative asset that’s essentially a substitute for gold rather than for the dollar.”

Though cryptocurrencies are unlikely to win the Fed’s approval, the central bank has considered developing its own digital currency. Last August, the Fed collaborated with researchers at MIT to develop and analyze a central bank digital currency. Powell emphasized how the pandemic revealed the importance of creating better payment systems so money can be quickly distributed to those in need, so it’s no surprise the Fed is considering its own digital currency.

Powell clarified that while the Fed is still looking at the possibility of a digital currency, thorough testing is needed before such a currency can be adopted. He said, “To move forward on this, we would need buy-in from Congress, from the administration, from broad elements of the public, and we haven’t really begun the job of that public engagement… Because we’re the world’s principal reserve currency, we don’t need to rush this project. We don’t need to be first to market.”

As cryptocurrencies continue to gain popularity, more countries are considering digital currencies. While a digital dollar likely won’t be coming any time soon, we may see some sort of digital currency backed by the Federal Reserve in the distant future.

I am not a financial advisor and my comments should never be taken as financial advice. Investments come with risk, so always do your research and analysis beforehand.

Share:
More Posts
From One Rock to Another 🚀

NASA’s OSIRIS-REx mission, after a seven-year journey, successfully captured and delivered asteroid samples.

Too Much Debt  💳

Rising credit card debt and delinquencies have created losses for credit card companies.

Get your daily Invstr Crunch

Get the market news and updates you need, delivered to your inbox or available on our daily podcast.

Risk Disclosure:

Invstr is not a bank and banking services are provided by Vast Bank, N.A.

Brokerage and Banking services are currently only available to U.S. residents.

Invstr app and web services are provided by Invstr Ltd. Advisory services are provided by Invstr Financial LLC, an investment adviser registered with the Securities Exchange Commission (SEC) details of which can be obtained here. Securities brokerage and custody services are provided by Apex Clearing, a broker dealer registered with the SEC and a member of FINRA and SIPC. There is no bank guarantee on securities and securities may lose value.

Investing involves risk and can lead to losses. Past performance does not guarantee future results.

Invstr app and web services are provided by Invstr Ltd. Invstr+ advisory services are provided by Invstr Financial LLC, an investment adviser registered with the Securities Exchange Commission (SEC). Securities brokerage and custody services are provided by Apex Clearing, a broker dealer registered with the SEC and a member of FINRA and SIPC. There is no bank guarantee on securities and securities may lose value. Vast Bank N.A. a nationally chartered bank and member of the FDIC, provides the banking products, including the products and services related to digital asset accounts. As with any asset, the value of Digital assets can go up or down and there can be a substantial risk that you lose money buying or holding digital assets. You should carefully consider whether trading or holding Digital assets is suitable for you in light of your financial condition. Your digital account does not support wallet to wallet transferring of your digital assets (i.e. cryptocurrencies) outside the platform. Any Digital Assets in your digital asset account are not insured by any government entities, including but not limited to FDIC or SIPC. The Invstr Visa® Debit Card is issued by Vast Bank, N.A. pursuant to a license from Visa U.S.A Inc and may be used everywhere Visa debit cards are accepted. Invstr Ltd, Invstr Financial LLC and Invstr Securities Ltd are subsidiaries of Marketspringpad Holdings (collectively “Invstr”) and Invstr is solely responsible for the application services and website content.

Watchlists provided when users first access the service are not a recommendation to invest. Instead they are provided to help users better navigate the service. Users are free to edit and create their own watchlists. From time to time, Invstr will suggest instruments solely based on an individual’s interest and the interest levels of the Invstr community. The statistical and portfolio builder models generated by Invstr do not reflect actual investment results and are not guarantees of future results. Comments provided by Invstr leaders, influencers or members of the Invstr Community are not recommendations and should not be construed as such. Invstr does not endorse the content or the positions posted by them. Their investment approach, and that of the models provided by Invstr, may be different from yours and may not be appropriate for you.