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Federal Reserve Chairman: Digital currency is "very useful" for money laundering

Author:Hubi Date:2018-07-26 09:58:50

Jerome Powell, president of the U.S. Federal Reserve, spoke harshly on digital currency when he spoke at the U.S. Congress.


According to CNBC, the US central bank governor told the House Financial Services Committee on Wednesday that the digital currency has no "intrinsic value" and poses a serious risk to investors.


Some of his concerns seem to stem from the obvious encryption bubble.


"In fact, there is no hope."


He added:


"It's not a real currency. We don't think we should do this... I'm paying close attention to it. If you think about the role of money, they should be a means of payment and a means of value storage, while digital money is paying Rarely used... As far as value storage is concerned, if you look at volatility, it doesn't exist."


“They are very challenging, because if you want to hide or wash money, the digital currency is great, we have to be very clear about this,” he said.


Still, "there are still investor and consumer protection issues," Powell said. The digital currency market is not enough to threaten financial stability, so the Fed has not sought to regulate it.


A few hours after Powell’s remarks were published, the US Financial Services Commission will hold another hearing that directly focuses on digital currencies.


As previously reported by CoinDesk, the committee hearing will discuss whether the digital currency is a new currency.


A memo published after the hearing specifically stated that member states would review the extent to which the US government should treat digital currency as currency and the potential use of digital currency at home and globally.