The head of the Federal reserve system (the fed) Jerome Powell (Jerome Powell) was very harsh against the cryptocurrency during his speech before the U.S. Congress.
We will remind that yesterday in the legislative body of the United States held two hearings related cryptomnesia. The Chairman of the fed, which essentially performs the functions of the Central Bank, spoke at a hearing of the Committee on financial services of the house of representatives.
He stated that crypto-currencies do not have “intrinsic value” and pose serious risks for investors. Powell shares the theory of “cryptophasia” and stressed that inexperienced investors misled by the growth of this asset class, and they invested in him, not having any guarantees of profit.
“Actually it’s not a currency. We do not consider cryptocurrencies as something we should do… First of all, I’m concerned. If you look at what currency, we will see that mostly they serve as a means of payment and means of hoarding. But cryptocurrencies are not often used to pay… and their volatilities shows that to save cost they also don’t fit”.
Powell said that although a new asset there are problems with the protection of investors and consumers, in General, the cryptocurrency market is not large enough to threaten financial stability, and therefore the fed does not seek to regulate it. However, he warned:
“Cryptocurrency is very problematic, because they are perfect in order to hide or launder money. We cannot forget about it.”
After the speech, Powell building of the U.S. Congress held one hearing devoted to the cryptocurrency. Previously published in the Memorandum it was said that one of the tasks facing the members of the Commission will be the need to determine “the extent to which the US government needs to consider the cryptocurrency as money, as well as their potential use in domestic and global markets.”
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