• Advertise
  • Submit a Press Release
NewsBTC
Bitcoin & cryptocurrency news today, price & technical analysis
Price & Market
Cap Data from
Nomics Logo
  • News
    • Bitcoin
    • Ethereum
    • Ripple
    • Cardano
    • Tezos
    • EOS
    • Chainlink
    • Sponsored
    • Press Releases
  • Analysis
    • Bitcoin (BTC)
    • Ethereum (ETH)
    • Cardano (ADA)
    • Chainlink (LINK)
    • Litecoin (LTC)
    • Tezos (XTZ)
    • Zcash (ZEC)
    • EOS
    • YearnFinance (YFI)
  • Education
    • Accepting Bitcoin payments
    • Using Bitcoin
    • What is Bitcoin Mining
    • How to Trade Bitcoin
    • How to Buy Bitcoin
    • Digital Currency Exchange
    • Proof of Existence
    • Is Bitcoin legal?
    • Bitcoin Books
  • Trading Course
  • Directory
    • Crypto Businesses
    • Bitcoin Brokers
    • Casinos
    • Sportsbooks
  • TradeeToro
  • Invest BTCTry
  • Join STC ICOBuy
No Result
View All Result
  • News
    • Bitcoin
    • Ethereum
    • Ripple
    • Cardano
    • Tezos
    • EOS
    • Chainlink
    • Sponsored
    • Press Releases
  • Analysis
    • Bitcoin (BTC)
    • Ethereum (ETH)
    • Cardano (ADA)
    • Chainlink (LINK)
    • Litecoin (LTC)
    • Tezos (XTZ)
    • Zcash (ZEC)
    • EOS
    • YearnFinance (YFI)
  • Education
    • Accepting Bitcoin payments
    • Using Bitcoin
    • What is Bitcoin Mining
    • How to Trade Bitcoin
    • How to Buy Bitcoin
    • Digital Currency Exchange
    • Proof of Existence
    • Is Bitcoin legal?
    • Bitcoin Books
  • Trading Course
  • Directory
    • Crypto Businesses
    • Bitcoin Brokers
    • Casinos
    • Sportsbooks
  • TradeeToro
  • Invest BTCTry
  • Join STC ICOBuy
No Result
View All Result
NewsBTC
No Result
View All Result
Price & Market
Cap Data from
Nomics Logo

US Fed Chairman Maintains Cryptos Don’t Have Intrinsic Value

Nick Chong by Nick Chong
3 years ago
in
Reading Time: 3min read
Fed
Advertisement

On Wednesday morning, the U.S. Congress held a hearing regarding cryptocurrencies, hearing mixed opinions from regulators and representatives of the U.S. government.

Federal Reserve Chairman: Cryptos Aren’t A Store of Value Or A Payment Tool

Jerome Powell, the chairman of the U.S. Federal Reserve (Fed), presented his thoughts about the current state of the crypto market while speaking to the House Financial Services Committee this morning.

When questioned about if blockchain-based currencies pose a “serious” threat to financial stability, Powell pointed out that “they aren’t big enough to do that yet.” Although the value of the cryptocurrency market may seem daunting on an individual level, compared to the value of the U.S’ M1 (all circulating cash and checking deposits) figure, cryptocurrencies are rather insignificant.

5 BTC + 300 Free Spins for new players & 15 BTC + 35.000 Free Spins every month, only at mBitcasino. Play Now!

The Fed chairman also added that the cryptocurrencies are out of the regulatory control of the Fed, and that it isn’t seeking to “provide oversight.” However, despite not having a say over crypto regulation, statements from Powell indicate that the Fed still has an eye on the cryptocurrency industry.

Speaking on the status of cryptos, the governmental figure stated:

“I think there are significant investor risks. Investors, relatively unsophisticated investors, see the asset going up in price and they think ‘this is great I’ll buy this.’ In fact, there is no promise behind that…. So I think there are investor and consumer protection issues as well”

The issue with consumer protection has become a common worry among regulatory bodies. As reported by NewsBTC previously, there are currently over 800 ‘dead’ cryptocurrencies, with many of the 800 being scams that were made to swindle millions of dollars off unsuspecting consumers. It only makes sense that regulators would do everything in their power to remove the presence of fraudulent parties in this space.

The Fed representative later added that he does not believe cryptos should be classified as a currency, noting:

“It’s not really a currency, it doesn’t really have any intrinsic value… Mainly I have concerns. If you think about what currencies do, they’re supposed to be a means of payment and a store of value basically and cryptocurrencies are not used very much in payment… and in terms of the store of value, if you look at the volatility (or lack thereof), it’s just not there.”

Staying in-line with the ‘script’ that regulators seem to stick to, Powell also brought up the issue with pseudonymous/anonymous users using cryptos to launder and smuggle money. He stated:

“They (cryptocurrencies) are very challenging. Cryptocurrencies are great if you are trying to hide money or if you are trying to launder money. So we have to be very cautious and conscious of that.”

But as many crypto proponents have brought attention to in the past, U.S. dollars can, and often are, utilized by criminals as a transfer of value tool.

Cryptos Pullback After Astonishing Run-Up

The past week has been relatively positive for cryptocurrency prices, as Bitcoin ran from $6,200 to a high of $7,500 within the matter of a few days on the back of many pieces of positive news, coupled with stronger technical signals.

However, as the market moved into midday on Wednesday, crypto prices plateaued and took a slight drop, possibly correlating with the harsh stance governmental figures took on this industry.

Many have begun to believe that it is too soon for Bitcoin to continue a run up to $10,000 and beyond, but for now, we will have to wait and see.

 

Image from Shutterstock
Tags: bloombergcryptocurrencycryptocurrency newsfedfederal reserveNewsregulationregulatoryU.S.
TweetShare
Nexo Logo
BitStarz Player Lands $2,459,124 Record Win! Could you be next big winner? Win up to $1,000,000 in One Spin at CryptoSlots
Nick Chong

Nick Chong

I am a writer who has been following Bitcoin for years now. My insights and interviews have been featured in leading publications in the industry such as LongHash and Decrypt. I own a small amount of Bitcoin.

Related Posts

Is Amazon About to Accept Dogecoin? The Payment Use Case Explored

Is Amazon About to Accept Dogecoin? The Payment Use Case Explored

2 hours ago
coinsbuy

How To Buy Bitcoin With a Credit Card in Coinsbuy

4 hours ago
Ethereum

TA: Ethereum Resumes Decline, Here’s How The Bears Could Take Control

9 hours ago
Bitcoin

TA: Here’s Why Bitcoin Price Is Primed To Revisit $52K Support

11 hours ago
Coinbase Addresses Future Revenue Concerns With Plans to Become Crypto’s Amazon

Coinbase Addresses Future Revenue Concerns With Plans to Become Crypto’s Amazon

14 hours ago
Cardano ADA ADAUSDT

This is Why Cardano Has Seen a “Huge” Spike in Developer Interest

17 hours ago

Premium Partners

Top Brokers

eToro

eToro

Review · Visit
Evolve Markets

Evolve Markets

Review · Visit
Bybit

Bybit

Review · Visit
ArbiSmart

ArbiSmart

Review · Visit
PrimeXBT

PrimeXBT

Review · Visit
Moneta Markets

Moneta Markets

Review · Visit

Top Casinos

BitStarz

BitStarz

Review · Visit
mBit

mBit

Review · Visit
CryptoGames

CryptoGames

Review · Visit
Bonusfinder DE

Bonusfinder DE

Review · Visit
Bspin

Bspin

Review · Visit
Wolf Bet

Wolf Bet

Review · Visit

Top Sportsbooks

1xBit

1xBit

Review · Visit

Top ICOs

Student Coin

Student Coin

Review · Visit

Token sale

Holdefi

Holdefi

Review · Visit

Press Releases

Fly to the Moon and Win One of Three Tesla Cars with New Bitcasino Game, Live Crash

April 19, 2021

Cryptocurrency Exchange Gate.io Celebrates 8th Anniversary

April 20, 2021

eToro Adds Chainlink and Uniswap Amid Investor Surge For Crypto

April 19, 2021

Newsletter Signup


ABOUT US

NewsBTC is a cryptocurrency news service that covers bitcoin news today, technical analysis & forecasts for bitcoin price and other altcoins. Here at NewsBTC, we are dedicated to enlightening everyone about bitcoin and other cryptocurrencies.

We cover BTC news related to bitcoin exchanges, bitcoin mining and price forecasts for various cryptocurrencies.

COMPANY

  • Advertising
  • Comments Policy
  • Privacy Center
  • Sitemap
  • About Us
  • Contact

Technical Analysis

  • Bitcoin (BTC)
  • Ethereum (ETH)
  • Ripple (XRP)
  • Chainlink (LINK)
  • Cardano (ADA)
  • Tezos (XTZ)

LINKS

Auto Trading Software ▸

Cryptocurrency news

  • Bitcoin
  • Ethereum
  • Ripple
  • Chainlink
  • Cardano
  • EOS
  • Tezos

© 2020 NewsBTC. All Rights Reserved.

  • News
    • Bitcoin
    • Ethereum
    • Ripple
    • Cardano
    • Tezos
    • EOS
    • Chainlink
    • Sponsored
    • Press Releases
  • Analysis
    • Bitcoin (BTC)
    • Ethereum (ETH)
    • Cardano (ADA)
    • Chainlink (LINK)
    • Litecoin (LTC)
    • Tezos (XTZ)
    • Zcash (ZEC)
    • EOS
    • YearnFinance (YFI)
  • Education
    • Accepting Bitcoin payments
    • Using Bitcoin
    • What is Bitcoin Mining
    • How to Trade Bitcoin
    • How to Buy Bitcoin
    • Digital Currency Exchange
    • Proof of Existence
    • Is Bitcoin legal?
    • Bitcoin Books
  • Trading Course
  • Directory
    • Crypto Businesses
    • Bitcoin Brokers
    • Casinos
    • Sportsbooks
  • Trade
  • Invest BTC
  • Join STC ICO

© 2020 NewsBTC. All Rights Reserved.

This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy Center or Cookie Policy.