Federal Reserve Chairman Powell: Not Worried Stablecoins Will Disrupt U.S. Financial Stability, Proper Regulation Can Provide Efficient Services

Federal Reserve Chairman Powell stated that he is not concerned that cryptocurrencies will undermine the financial stability of the United States, "If appropriately regulated, stablecoins can certainly provide efficient and useful services to consumers in the financial system." Powell's remarks led to a surge in Bitcoin, rising from $46,600 to $49,462, briefly knocking on the door of $50,000.

Paul's remarks were interpreted as the latest attitude of the Biden administration towards cryptocurrency assets.

On November 1, in response to the President's Working Group on Financial Markets releasing a report, it was suggested that stablecoin issuers "urgently need to be subject to bank-like regulation" to address risks. In response, Paul affirmed this. He said that while stablecoins have potential for expansion, "right now, they are not."

Paul stated that while people may have important and convenient payment networks now, cryptocurrencies still have their risks, and there are currently no appropriate regulations and protections in place. People must rely on the government, especially the Federal Reserve, to ensure that the payment system is secure and reliable. However, he has also stated that he does not support banning cryptocurrency assets as China has done.

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