Powell: Under proper supervision, stable currency has a place

According to reports, Federal Reserve Chairman Powell said that he was really worried about the unlicensed blockchain. This is not conducive to maintaining safety and soundness. For the United States, it is important to have a legal framework around digital activities. Under proper supervision, stable currency has a place. That is a matter of Congress, not the responsibility of the Federal Reserve.

Interpretation of this information:

The message highlights Federal Reserve Chairman Powell’s concern about unlicensed blockchain and the need for a legal framework to maintain safety and soundness in the digital space. The statement suggests that the US needs to establish regulations around digital activities to ensure that stable currency can operate under proper supervision. However, the responsibility of laying out such legislation lies with Congress and not the Federal Reserve.

The rise of blockchain technology offers numerous benefits, including increased transparency and decentralization. However, the unlicensed nature of blockchain has also given rise to concerns around security and trustworthiness. Chairman Powell’s concern is therefore understandable, as the absence of a legal framework can lead to potential fraud, market manipulation, and other malicious activities.

The statement suggests that the Federal Reserve recognizes the importance of stable currency, even in the digital space. Stablecoins have become increasingly popular in recent years, given their ability to offer stability and reduce volatility. However, for stablecoins to operate effectively, they need to operate under proper oversight and regulation.

Chairman Powell further emphasizes that the responsibility of establishing regulations around digital activities lies with Congress, and not the Federal Reserve. This is a significant point, as it highlights the need for government action in establishing a legal framework that can provide clarity and guidance to businesses and individuals operating in the digital space.

Overall, the message highlights the importance of a legal framework around digital activities and the need for proper supervision to maintain safety and soundness. The three keywords that summarize the content are unlicensed blockchain, legal framework, and Congress.