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Stablecoins and a Fed Digital Currency Could Coexist, Says Powell

Federal Reserve System. FED. Financial Business Background

Jerome Powell, chairman of the Federal Reserve, reverses one of his prior positions on the relationship between CBDCs and stablecoins.

Source: CryptoPotato

BTC USD up +1.47%, ETH USD up +3.91%

In his renomination hearing on Tuesday, Powell suggested that CBDCs and stablecoins could co-exist without the former replacing the latter. The Fed Chair discussed the possibility of a Federal Reserve issued CBDC.

This was far less hawkish sentiment towards stablecoins than previously stated by Powell last year. In July, he argued that CBDC’s primary benefit would replace cryptocurrency-including stablecoins.

Powell has no desire to fully ban other cryptocurrencies, distinguishing the US regulator approach from China’s.

Meanwhile, stablecoins are a hotly contested subject among regulators. Both industry leaders and congresspeople pushed conflicting views on the topic in a hearing last month.

Even though the industry describes stablecoins as a compliment to the financial system, Maxine Waters stated that they could be a threat to the US dollar.


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