[Digital Today Reporter Hyeon-woo Choo] Jerome Powell, chairman of the Federal Reserve Board (Fed) in the United States, once again warned against virtual assets.
According to foreign media such as Cointelegraph on the 22nd (local time), Fed Chairman Powell attended an online conference hosted by the International Settlement Bank (BIS) and expressed his personal views on the emerging virtual assets.
When asked at the meeting,’Do you think virtual assets are a threat to financial stability?’
In addition, he pointed out that “Bitcoin does not work as a store of value,” and emphasized that “it is a potentially close to gold asset, not a substitute for the dollar.”
Chairman Powell pointed out that “not only the virtual asset itself, but also the large amount of power consumption generated during the mining process is a problem.”
His remarks are evaluated as a reaffirmation of the strict view of virtual assets as the head of the traditional financial system.
In addition, they expressed a positive view on stablecoins based on legal currencies such as the US dollar. His perception is that there is a possibility that stablecoins will become part of the financial system of the future. However, he also emphasized that strict regulation by the government and financial supervisory institutions is essential.
They also showed a cautious stance on the digital currency (CBDC) issued by the central bank. “There is a need for sufficient research and review on CBDC,” he said. “Unlike technological advances, this is not the time to decide on actual CBDC issuance.”
After Chairman Powell’s remarks, the price of virtual assets, including bitcoin, plummeted.
Based on the coin market cap at 9:30 am on the 23rd, Bitcoin (BTC) fell 3.39% from the day before to $5464.2, and Ethereum (ETH) fell 4.15% to $1684. Nine out of 10 of the top 10 virtual assets based on market capitalization are on a decline.
Author/ Translator: Jamie Kim
Bio: Jamie Kim is a technology journalist. Raised in Hong Kong and always vocal at heart. She aims to share her expertise with the readers at blockreview.net. Kim is a Bitcoin maximalist who believes with unwavering conviction that Bitcoin is the only cryptocurrency – in fact, currency – worth caring about.