US Fed Chair has commented on digital assets and inflation

Jerome Powell, during a speech before the Senate Committee, said that CBDCs and stablecoins can coexist

12.01.2022 - 11:40

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What’s new? The US Federal Reserve System (Fed) Chairman Jerome Powell addressed the Senate Banking Committee on January 11. In his speech, he answered the questions about the stablecoins and CBDCs and also touched on the topic of the high inflation, Blockworks reports.

The Blockworks material

What did Powell say about the CBDCs and stablecoins? The lawmakers wanted to know if anything would be able to prevent the coexistence of the digital dollar and stablecoins. To which Powell replied:

“Nothing can prevent the coexistence of privately regulated digital assets [stablecoins] and the digital dollar.”

What else did the Fed representative add? Powell also said that a report on digital currencies will be released soon. He said the report's delay was due to the monetary policy adjustments.

“The preparation of the report was a difficult task and we did not fully achieve our goals. However, it is now ready for release.”

What did Powell say about inflation? The Fed Chairman said that the regulator will begin to raise the rate and cut the stimulus program to combat rising inflation. Powell also added that the normalization policy will start this year, but it will take 2 to 6 months to implement it.

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