Jerome Powell, chairman of the US Federal Reserve System (Fed), agreed that some global cryptocurrency could eliminate the need for reserve currencies, the main one being the US dollar. He stated this at a hearing in the Banking Committee of the US Senate.
“It is possible, but in reality we do not see mass adoption. Bitcoin is a good example. Almost no one uses it as a means of payment, it is a speculative means of accumulation , ”he stressed.
#forkquotes pic.twitter.com/aTUh7j5fUD
– BlockchainJournal (@BlockchainJournal) July 12, 2019
Further, Powell noted that scenarios with the elimination of reserve currencies have been spoken about since the very emergence of cryptocurrencies and the hypothetical financial system, including the Fed, could be completely transformed, and different currencies could go to the US at the same time, which would be a return to an earlier era.
However, it should be added that all this was most likely said to indicate the lack of mass adoption of cryptocurrencies as a means of payment using Bitcoin as an example and to demonstrate how improbable is the rejection of reserve currencies.
Despite this, the head of the Fed clearly stated that one should not count on the fact that the US dollar will always be the world's reserve currency.
If you didn’t really want to.
Fed Chairman Powell:
* Being one reserve currency incurs benefits & costs, one cost: you lose anti-fragility ("market discipline").
* We're not running a sustainable fiscal policy.
* Dollar won't be reserve currency forever. pic.twitter.com/uw6P6LYozn– ? StopAndDecrypt ? (@StopAndDecrypt) July 12, 2019
Earlier, Powell said that the Libra digital currency will not be launched until its creators answer all the concerns of regulators.
On July 12, Bitcoin was also mentioned by US President Donald Trump, who does not consider cryptocurrency money. In his opinion, the dollar will forever remain the dominant world currency.
#forkquotes pic.twitter.com/TXbTL544oL
– BlockchainJournal (@BlockchainJournal) July 12, 2019
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