Fed Chair Person says Cryptocurrencies are ‘Great’ for Money Laundering

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The chairman of the U.S. Federal Reserve, Jerome Powell, did not had any kind words to say about cryptocurrencies during an appearance before the U.S. Congress.

According to CNBC’s report, Meanwhile talking at the House Financial Services Committee, the head of U.S central bank told on Wednesday that cryptocurrencies have no “intrinsic value” and presented critical risks of investors. His concern seems like coming from the apparent crypto bubble, and he said, ‘relatively unsophisticated investors see the asset go up in price, and they think ‘this is great, I’ll buy this.’ In fact, there is no promise of that.’

He included:

“It’s not really a currency. We’re not looking at this as something that we should be doing 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 regarding the store of value, if you look at the volatility, it’s just not there.”

According to Bloomberg, Powell revealed that there are investor and consumer protection issues and the crypto market is nor big enough to threaten financial stability, and therefore the Fed isn’t seeking to regulate it.

He said:

“They are very challenging because cryptocurrencies are great if you’re trying to hide or launder money, we have to be very conscious of that.”

A notice published after the hearing was announced notably states:

“The members will examine the extent to which the U.S. government should consider cryptocurrencies as money and the potential domestic and global uses for cryptocurrencies.”

Nishanth Shetty

Nishanth Shetty is a technical writer, author and a crypto-advisor working at Cryptofame. Based in the city of dreams, Mumbai, on the west coast of India. He holds a bachelors degrees from Mangalore University. Nishanth has a myriad experience of technical writings for tech brands. His interests include technology, travel, and food.