Name: Fed's Powell says bitcoin is more of a substitute for gold than the dollar
Brand: marketwatch.com
SKU: marketwatch-com-237
Availability: OnlineOnly

critic

Fed's Powell says bitcoin is more of a substitute for gold than the dollar

preview

Bitcoin is lacking key ingredients that would make it a useful currency. As a result, the crypto currency is essentially more of a substitute for gold than the dollar, Fed Chairman Jerome Powell said Monday. “Crypto assets are highly volatile — see Bitcoin — and therefore not really useful as a store of value. They’re not backed by anything. They’re more of an asset for speculation,” Powell said, during a webinar sponsored by the Bank of International Settlements.“It is essentially a substitute for gold rather than the dollar,” he added. Stable coins are “an improvement” over crypto assets, but their credibility comes from being backed by a sovereign currency, he said. “Stable coins may have a role to play with appropriate regulation, but that role will not be to form the basis of a new global monetary system,” he said. “A global currency governed by the incentives of a private company is something that will deserve and will receive the highest level of regulatory expectations,” the Fed chairman said. One day in the future, the Fed might develop a digital dollar, Powell said, but not until after a lot of careful review and acceptance by the American public and government. It would be better for Congress to pass laws specifically authorizing the digital currency rather than for the Fed to use existing authority, he said. Some economists argue that a digital dollar would have been useful in the recent efforts to stimulate the economy during the pandemic. Theoretically, digital dollars could instantaneously be sent out to Americans. Read: As he has in the past, Powell stressed the Fed is in “go-slow” mode about such ground-breaking technology. While work is going on exploring the ramifications of a digital dollar, Powell stressed that no decision is looming. “Because we’re the world’s principle reserve currency, we don’t need to rush this project — we don’t to be first to market,” Powell said. One concern Powell mentioned is that Americans would want to hold digital dollars during any crisis, leading to potential bank runs out of paper currency. “There is just a tremendous amount of thinking going on, on how we can capture the potential benefits while also managing those potential risks,” Powell said.Any doubt that the Federal Reserve will hike interest rates by 75 basis points next week is gone given the hot inflation data, economists said.SearchVisit a quote page and your recently viewed tickers will be displayed here.Search TickersNo results found

Bitcoin is lacking key ingredients that would make it a useful currency. As a result, the crypto currency is essentially more of a substitute for gold than the dollar, Fed Chairman Jerome Powell said Monday. “Crypto assets are highly volatile — see Bitcoin — and therefore not really useful as a store of value. They’re not backed by anything. They’re more of an asset for speculation,” Powell said, during a webinar sponsored by the Bank of International Settlements.“It is essentially a substitute for gold rather than the dollar,” he added. Stable coins are “an improvement” over crypto assets,...

public

I cover the Fed as best I can for Marketwatch. Grateful for story ideas and fresh perspectives. grobb@Marketwatch.com

Greg Robb

MarketWatch is a website that provides financial information, business news, analysis, and stock market data. Along with The Wall Street Journal and Barron's, it is a subsidiary of Dow Jones & Company, a property of News Corp. Notable contributors include Mark Hulbert and Francine McKenna.

marketwatch.com

Credible

Speculation

Anecdotal Evidence

Generalization

Stacking the Deck

Appeal to Authority

Straw Man

Slippery Slope

Emotional Appeal

Red Herring

False Dilemma

Illogical

Moral Equivalency

Ad Hominem

Correlation w/o Causation

Semantics

Begging the Question

Faulty Analogy

Non Sequitur

Bandwagon

Dogmatism

Failing Occam's Razor

Biased

Pure Opinion

Hit Piece

Racial Bias

National Bias

Religious Bias

Financial Incentive

Political Agenda

Gender Bias

Misused Image/Video

Study Misinterpreted

Mistake

Misused Term

Science Misrepresented

Factual Error

Satire

Surface Level

Lack of Reliable Sources

Sensational

Not Credible

Investigative

Balanced

Well Sourced

Great Context

sports

entertainment

U.S.

international

business

technology

science

culture

politics

media

health

Fed's Powell says bitcoin is more of a substitute for gold than the dollar

No article scores yet.

CRITIC REVIEWS

PUBLIC REVIEWS