Foreign media reports, the U.S. Federal Reserve Chairman Colin Powell yesterday (22) said that virtual currency is essentially “a substitute for Gold, not the U.S. dollar,” and remains an unstable speculative asset. He also pointed out that the Bureau is not in a hurry to introduce digital dollars at this stage.
Bitcoin was last quoted at $54,544.1 today (23rd), down $2,426.5 or 4.26%.
Powell said in the Bank for International Settlements (BIS) online conference, virtual currencies are highly volatile, not an asset that can reserve value, and there is no support behind it, which can be said to be a speculative asset. He said, stable coins (Stable coins, through the virtual currency linked to gold, the dollar or the euro and other stable assets) for virtual assets is a major progress, but the credibility of stable coins from the sovereign currency support, and stable coins may be able to play a role through appropriate regulation, but will not therefore lay the foundation for a new global monetary system.
Over the past few years, the Federal Reserve has continued to develop its own payment system, which facilitates the rapid transfer of funds and is expected to be launched within the next two years. The bureau is also investigating the need for, and practicality of, a central bank digital currency. He pointed out that the outbreak of Newcastle Pneumonia (CCP) highlights the importance of developing a better payment system so that relief can be quickly given to those in need, and the impact on poor and low- and middle-income communities at all levels. But he added that further development will require the support of Congress, the Administration, and the public, and that no real citizen engagement efforts have begun yet. The Bureau will certainly remain cautious and transparent in developing a central bank digital currency, and progress on the digital dollar is still very slow and there is no rush to launch it.
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