- Jerome Powell stated in his renomination hearing today that the Federal Reserve’s CBDC report was forthcoming within weeks.
- Powell faced skepticism toward stablecoins and cryptocurrencies from a number of senators.
- The report, according to Powell, focuses less on taking strong positions and more on asking the right questions.
In Federal Reserve Chair Jerome Powell’s renomination hearing before the Senate Banking Committee Hearing today, Powell said that a Fed report on central bank digital currencies was expected in the “coming weeks.”
A Long-Awaited Report
Federal Reserve Chairman Jerome Powell testified at his renomination hearing before the Senate Banking committee today that the central bank’s highly-anticipated report on CBDCs and stablecoins was soon forthcoming.
Powell, whom President Joe Biden recently renominated to head the U.S. central bank for another four-year term, assured Senator Mike Crapo (R-I) at the Senator’s pressing that the long-awaited report on central bank digital currencies would be published “within weeks.”
Senator Crapo pushed Powell as to why the Fed had not released its report on central bank digital currencies as it said it would, citing delays in the Fed’s publication. Powell responded by saying that the “report really is ready to go, and I would expect we will drop it—I hate to say it again—in the coming weeks…”
Moreover, the Fed Chair gave some details as to what Congress and the public might expect from the coming report, explaining that it was more an “exercise in asking questions and seeking input from the public rather than taking a lot of positions on various issues.” Nevertheless, Powell testified, that the Fed does “take some positions.”
While the nomination hearing was predominantly concerned with broader issues in the economy, such as inflation and interest rates, cryptocurrency remained a theme. In his opening statement, Senator Sherrod Brown (D-OH) warned of the dangers of cryptocurrencies to the U.S. economy. Senator Brown said that the Fed needs to “take seriously the systemic risks that threaten our economic progress like cryptocurrencies and stablecoins.”
This was not the first time Senator Brown expressed his trepidation towards cryptocurrencies and stablecoins. Last month, in a Senate Banking Committee Hearing dedicated to stablecoin discussion, he called cryptocurrency a “new fantasy economy” and warned that stablecoins made it easier for people to risk their money on volatile and possibly fraudulent crypto assets.
The Fed’s report on a central bank digital currency has been long awaited. In February last year, Jerome Powell called a U.S. digital dollar a “high priority.”
Disclosure: At the time of writing, the author of this piece owned BTC, ETH, and several other cryptocurrencies.
The information on or accessed through this website is obtained from independent sources we believe to be accurate and reliable, but Decentral Media, Inc. makes no representation or warranty as to the timeliness, completeness, or accuracy of any information on or accessed through this website. Decentral Media, Inc. is not an investment advisor. We do not give personalized investment advice or other financial advice. The information on this website is subject to change without notice. Some or all of the information on this website may become outdated, or it may be or become incomplete or inaccurate. We may, but are not obligated to, update any outdated, incomplete, or inaccurate information.
You should never make an investment decision on an ICO, IEO, or other investment based on the information on this website, and you should never interpret or otherwise rely on any of the information on this website as investment advice. We strongly recommend that you consult a licensed investment advisor or other qualified financial professional if you are seeking investment advice on an ICO, IEO, or other investment. We do not accept compensation in any form for analyzing or reporting on any ICO, IEO, cryptocurrency, currency, tokenized sales, securities, or commodities.
See full terms and conditions.
U.S. Senator Slams Stablecoins
The U.S. Senate Committee on Banking, Housing, and Urban Affairs held a hearing this morning on stablecoin regulation. Senator Sherrod Brown, who chairs the committee, was particularly wary of the technology….
Fed May Launch CBDC Review As Soon As This Week: Report
The U.S. Central Bank is weighing CBDC options and will publish its findings soon, reports say. Federal Reserve to Release CBDC Study Results This week, the Federal Reserve could finally…
Our Crypto Predictions for 2022
Regulatory intervention, Ethereum’s merge to Proof-of-Stake, the growth of DAOs, and—yes—the Metaverse look set to have a big impact on crypto next year. Reflections on 2021 in Crypto and the…
Web3 – What it is, What it Means, and How We’ll Transition
We are at the dawn of a new era of the internet. Bit by bit, this new digital world, and all that it enables, will slowly become a part of…