Cryptocurrencies have “staying power” as an asset class, according to Jerome Powell – U.S. Federal Reserve Chair. His statement was made during his testimony before the House Financial Services Committee on Wednesday.
The central bank should have a role to play in the regulatory framework being developed for stablecoins, he argued. “We do see payment stablecoins as a form of money. The ultimate source of credibility in money is central bank. We believe it would be appropriate to have a robust federal role.”
Members of the Federal Reserve have held discussions with lawmakers on crypto legislation. Powell noted that “leaving us [U.S. Federal Reserve] with a weak role and allowing a lot of private money creation at the state level would be a mistake.”
A central bank digital currency or a “CBDC” is unlikely any time soon, the chair stated. This comes shortly after the FOMC skipped a rate hike for the first time since March of 2022.
On Wednesday, Bitcoin surpassed the $30,000 level. Technicals suggest it could go further up to $34,000, as per Glassnode – an on-chain data provider. This is despite the SEC filing a lawsuit against both Binance and Coinbase Global Inc.
