Powell blocks cryptocurrency banks! Focusing on the merger of CBDCs and fixed income securities, the cryptocurrency announcement was announced

Aside from the slow rise in inflation and the declining balance sheet, the Fed chairman's re-election hearing has other issues, including a future cryptocurrency announcement, police promotion of CBDCs, and shutdown of the Fed. cryptocurrency. The bank.

Cryptocurrency Report

The Fed's cryptocurrency report was due to be released during the hearing, but Jerome Powell said the report was finalized and expected to be released next week.

The cryptocurrency statement was supposed to address key issues such as central bank digital currencies and digital dollars, and although President Powell said the report could not provide answers to all parties, it is important to note that when the statement does not provide an overview. of public interest, indicating that it is close to the matter. .

Is the CBDC a solid hunter?

Republican Senator Pat Toomey has raised issues with the CBDCs with Powell, opposing the Fed insurer on one side of the financial system, and is not expected to announce the CBDCs to alter the stability of the US dollar. And Powell agrees.

Toomey asks: Assuming Congress gives the Fed the power to advertise digital banking institutions (CBDCs), are there any laws restricting the integration of stable self-government and CBDCs?

Powell said there would be no such problem (stuck stability parts). In fact, Powell has challenged the notion of a stable coin in the past, but on July 14 of last year he pointed out, “If you have a digital dollar, you don't need it. The coins are stable and you don't need them. cryptocurrency. "

On October 1 of last year, he had no plans to ban cryptocurrencies and coins, but changed his stance, insisting that securities should be regulated.

Block crypto banks

In the cryptocurrency market, Powell's refusal to apply for a cryptocurrency bank is the most controversial, although he now trades Kraken, the Wyoming Cryptocurrency Bank Avanti, and other licensed entities in the SPDI bank.

According to the report, even after obtaining the SPDI license, cryptocurrency banks will still need to set up a bank with the Federal Reserve for payments with other banks, central banks and other financial institutions. Senator Cynthia Lummis thinks the Fed bloc is unfair.

President Powell said the Fed was studying the application of SPDI, but a quick deal could accelerate the SPDI model and have implications for broader spending.