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Fed Chair Says Cryptocurrencies "Completely Failed" to Become Payment Mechanism

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Thu, 07/15/2021 - 15:42
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Alex Dovbnya
Jerome Powell also said that Bitcoin's volatility was a sign of a frothy market
Fed Chair Says Cryptocurrencies "Completely Failed" to Become Payment Mechanism
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During his ongoing testimony before the Senate Committee on Banking, Housing and Urban Affairs, Federal Reserve Chairman Jerome Powell said that cryptocurrencies had failed as a means of payment:

Let me say this. With cryptocurrencies, it's not they didn't aspire to be a payment mechanism, it's that they completely failed to become one (except for people who desire anonymity, of course, for whatever reason).



He adds that stablecoins are also growing incredibly fast without "appropriate regulation." As reported by U.Today, the central banker argued that private dollar-pegged cryptocurrencies would not be able to replace "a sound monetary system."

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Powell also mentioned that Bitcoin's volatility was a sign of market froth:

Financial conditions are highly accommodative. People are getting things financed. SPACs and things like that are getting done. We see Bitcoin going up in value and down in value. At times, it's felt like a somewhat frothy market. You do worry about that.

Bitcoin is currently down nearly 45 percent since Powell called it an instrument for speculation back in March. It is currently changing hands at $31,613 on the Bitstamp exchange.

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About the author

Alex Dovbnya (aka AlexMorris) is a cryptocurrency expert, trader and journalist with extensive experience of covering everything related to the burgeoning industry — from price analysis to Blockchain disruption. Alex authored more than 1,000 stories for U.Today, CryptoComes and other fintech media outlets. He’s particularly interested in regulatory trends around the globe that are shaping the future of digital assets, can be contacted at alex.dovbnya@u.today.