‘we see payment stablecoins as a form of money’

Powell testified before the House Financial Services Committee today.
He discussed a range of topics around digital assets on Wednesday.
Bitcoin surpassed the $30,000 level today for the first in two months.

Cryptocurrencies seem to have some “staying power” as an asset class, says Jerome Powell – Chair of the U.S. Federal Reserve.

Fed should have a role in crypto legislation

On Wednesday, he also argued that the central bank should have a role to play in the regulatory framework being developed for stablecoins.

We do see payment stablecoins as a form of money. The ultimate source of credibility in money is central bank. We believe it would be appropriate to have a robust federal role.

Chair Powell made these remarks in his testimony before the House Financial Services Committee today.

Interestingly, his statement signalled acceptance of crypto assets even though the SEC has recently filed a lawsuit against both Binance and Coinbase Global Inc.

CBDC is not likely any time soon

Chair Powell confirmed this morning that members of the Federal Reserve have held discussions with lawmakers on crypto legislation.

Leaving us [U.S. Federal Reserve] with a weak role and allowing a lot of private money creation at the state level would be a mistake.

In his testimony, he also said that a central bank digital currency or a “CBDC” is unlikely any time soon. His remarks arrive shortly after the FOMC skipped a rate hike for the first time since March of 2022.

Also on Wednesday, bitcoin surpassed the $30,000 level and technicals suggest it could go further up to $34,000, as per Glassnode – an on-chain data provider (find out more).