The Chairman of the governing Board of the Federal reserve system Jerome Powell (Jerome Powell) said that cryptocurrencies carry serious risks for investors. He stated this during his speech in the U.S. Congress on Wednesday.
“Relatively inexperienced investors see the asset rises in price, and think: “Great, I need to buy.” In fact, there are no guarantees,” said Powell, speaking before the house Committee on financial services.
According to the head of the fed, crypto-currencies are not real currencies because they have no “intrinsic value”. He also drew attention to problems with the protection of investors and consumers.
However, he added that the cryptocurrency market is not large enough to threaten financial stability, and the US Central Bank has no plans to regulate it.
Recall that Powell has always been a skeptical attitude towards bitcoin and other cryptocurrencies. In spring 2017 the report “Innovation, technology and payment system” Yale law school, he outlined his views on blockchain technology and cryptocurrencies. In particular, he noted that “advanced cryptography can reduce vulnerability to cyber attacks, but to facilitate the concealment of illegal activities“.
In November of the same year, Powell said that the decline in cryptocurrency market are not able to destabilize the economy.