WASHINGTON (Sputnik) – The Federal Reserve is not in a rush to launch a digital currency because such a move may pit the US central bank against commercial banks to compete for funds and destabilise the financial system, Chairman Jerome Powell said on Monday.
Powell said the Federal Reserve needs to be at the cutting edge of financial innovation because it is the central bank for the world’s reserve currency, but that obligation should not come at the risk of compromising the stability of the US financial system.
Powell pointed out that crypto assets, including the industry-standard Bitcoin, were highly volatile by nature and did not have intrinsic value to make them a store of value on their own.
The US authorities have repeatedly expressed reservations about legitimizing crypto assets into the financial system, with Treasury Secretary Janet Yellen citing concerns about a run on banking deposits and the potential for money laundering, among others.
Sourse: sputniknews.com
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