Yesterday Jerome Powell, President of the United States Federal Reserve (FED), assured that in the coming weeks the agency will publish a report on cryptocurrencies. What will that report contain?
The mystery of the crypto FED report
While addressing Idaho Senator Mike Crapo, Powell assured that the Fed’s report on digital currencies was not where he wanted it to be. However, it would still be published in the coming weeks.
The news took the crypto community by surprise as this report was initially scheduled to be published in September 2021, but was delayed several times. So the question is: why now?
In fact, Powell cited “monetary policy changes” as part of the reason for the crypto report’s release delay.
And, while it’s not quite finished, “it’s going to be more of an exercise in asking questions and seeking input from the public rather than taking many positions on various issues,” Powell explained. Even when the FED has already made some assumptions.
Thus, the Fed’s report is expected to include aspects of a central bank digital currency, or CBDC. Interestingly, during the hearing, Senator Pat Toomey asked Powell if a CBDC could co-exist with “firmly issued, well-regulated crypto stablecoins.” Before the question the president of the FED responded with an absolute negative.
Is a CBDC coming up for the United States?
Considering that the report is expected to include something about CBDCs, the crypto community is beginning to wonder if the US is ready to launch such a coin.
On the same day as Powell’s testimony, Tom Emmer hinted on Twitter that he would introduce new digital currency legislation.
However, we should not rush to the facts. The reality is that, in the past, Powell has suggested there was no rush to launch a digital dollar. Yes, even as countries like China moved forward in developing their own CBDCs.
We want your opinion! What will the Fed include in its report on cryptocurrencies? Will it be positive for the industry?