The hearing of Jerome Powell, who is seeking another term as head of the Fed, took place in the United States last week. During the event, he spoke about CBDCs, stablecoins, and inflation.
Jerome Powell, the Federal Reserve’s current chairman, seems to have shifted one of his earlier opinions on CBDCs and stablecoins. During testimony before the United States Congress, he suggested that CBDCs and stablecoins may coexist.
He also mentioned the potential of the Federal Reserve issuing CBDCs. Senator Pat Toomey, a significant cryptocurrency supporter, questioned Powell whether the Fed’s issuing of CBDCs precludes the formation of “well-regulated, privately issued stablecoins.”
Powell said firmly, “no, definitely not.”
Jerome Powell is one of the most influential people in the world today. He is currently the Chairman of the Federal Reserve, a position he has held since February 2018 and is also a former partner at private equity firm Carlyle Group. Powell graduated from Princeton University with an undergraduate degree in economics and received his MBA degree from Harvard Business School in 1975.
Last year, Powell’s approach on stablecoins was substantially more hawkish than this year’s. When he spoke about the benefits of cbdcs in 2021, he said they would replace cryptocurrencies and stablecoins. However, he emphasised that he has no intention of banning other digital currencies altogether, separating the US regulatory approach from the Chinese one.
Stablecoins are now a hot subject among US authorities. During a hearing last month, both business executives and politicians expressed differing viewpoints on the topic. While the industry views stablecoins as a vital addition to the financial system, Maxine Waters believes they might represent a danger to the US dollar. Some people believe stablecoins may be regarded as securities.