“Consumers do not need state cryptocurrencies and stablecoins”

At a forum sponsored by the Swiss Institute for International Studies, Jerome Powell, Chairman of the Board of Governors of the US Federal Reserve, spoke about state cryptocurrencies and stablecoins.

AT answer When asked whether central banks are missing out on the opportunities offered by digital currencies, Powell said that while the Federal Reserve is monitoring the cryptocurrency market, the Central Bank is “not actively exploring this issue.”

Powell noted that “if you think about a currency that would suit the United States, then it must be truly cybersafe.” He added that “it’s one thing when criminals try to fake fiat money, and it’s quite another when they try to break into cyber currency and use the computer to create as many coins as they want.”

Powell referred to the lack of demand for such digital currencies. According to him, “consumers have many payment options and do not require the active distribution of state cryptocurrencies and stablecoins.”

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Regarding the Libra project from Facebook, Powell noted that, due to the size of the Facebook user base, its stablecoin could “very quickly become a systemically important asset.” Powell warned that “Libra will need to adhere to the highest standards in regulation and supervision” and “its spread will not happen quickly.”

Earlier Jerome Powell said that the Central Bank held
Facebook consultations to discuss the Libra project. In the spring it became known that the US Federal Reserve could soon include
cryptocurrency market crash into the list of risks that should be taken into account when conducting stress control tests.