Powell: Cryptocurrencies are Speculative Unstable Assets

Cryptocurrencies are speculative assets and an unstable store of value, said the Chairman of the United States Federal Reserve, Jerome Powell, on Monday, noting that the Fed is not in a hurry to introduce its own digital currency, CNBC reported.

“They’re highly volatile and therefore not really useful stores of value and they’re not backed by anything.”

“It’s more a speculative asset that’s essentially a substitute for gold rather than for the Dollar.”

Once again, Powell noted that a type of legislation would be needed first before going through with the process of introducing an official digital currency in the U.S.

“To move forward on this, we would need buy-in from Congress, from the administration, from broad elements of the public, and we haven’t really begun the job of that public engagement.”

“So you can expect us to move with great care and transparency with regard to developing a central bank digital currency.”