Going against the prevalent anti-crypto stance, the chairman of federal reserve Jerome Powell says he does not feel cryptocurrencies to be any threat to economic stability. In the past, most anti-crypto US politicians have used this argument to suppress innovations in the crypto space. The Federal Reserve is generally held to be against a disruptive monetary system like cryptocurrencies. Coming from the chairman, it means a big deal for the global crypto community and entrepreneurs in the United States of America particularly.
While speaking to the Wall Street Journal, Powell said that cryptocurrencies do not pose any imminent threat to the economic stability of the United States or the world. However, he added that the Federal Reserve must carefully monitor activities in the crypto space to make sure it adheres to compliance norms. If crypto is not monitored, according to Powell, it can grow to become a problem for national security and the economy.
Through his statements, Powell hinted at a possible amicable solution between crypto entrepreneurs and investors and the government. It is looking especially hopeful after a recent meeting in the Senate where some of the top experts in cryptocurrencies put forward their opinions. How things go down in the United States will have repercussions on the global crypto landscape. While most things point towards a comprehensive crypto regulation, it is still too early to rule out possibilities of mismanagement and stringent regulations.