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Federal Reserve Chair Jerome Powell said on Wednesday that crypto currencies are unlikely to become a mainstream part of the U.S. payments system but stablecoins might be, adding that more regulations are needed before that can happen.
FILE PHOTO: Representations of cryptocurrencies Bitcoin, Ethereum, DogeCoin, Ripple, Litecoin are placed on PC motherboard in this illustration taken, June 29, 2021. REUTERS/Dado Ruvic/Illustration/File Photo
REUTERS: Federal Reserve Chair Jerome Powell said on Wednesday that crypto currencies are unlikely to become a mainstream part of the U.S. payments system but stablecoins might be, adding that more regulations are needed before that can happen.
“We have a pretty strong regulatory framework around bank deposits, for example, or money market funds,” Powell said during a hearing before the U.S. House of Representatives Financial Services Committee. “That doesn’t exist currently for stablecoins and if they’re going to be a significant part of the payments universe – which we don’t think crypto assets will be but stablecoins might be – then we need an appropriate regulatory framework.”
(Reporting by Jonnelle Marte; Editing by Chizu Nomiyama)