Powell “Fed, Cannot Purchase Cryptocurrencies… Do Not Wish For Such Authority”

Federal Reserve Chairman Jerome Powell Who Has Drawn A Clear Line With Cryptocurrency (Source: WSJ)

Jerome Powell, Chair of the United States Federal Reserve (Fed), recently stated at the semi-annual monetary policy report hearing held at the Senate Banking Committee that "The Fed is legally unable to purchase cryptocurrencies, nor does it seek to have that authority," according to Walter Bloomberg.

This statement is interpreted as clearly indicating that the Fed is aiming for a neutral and limited role regarding the digital asset market. Particularly, as central banks in various countries have shown interest in Central Bank Digital Currency (CBDC) or Stablecoin, the United States Fed has reaffirmed its stance of drawing the line at direct purchasing or holding of cryptocurrencies.

Chair Powell has previously stated that "The Digital Dollar (CBDC) is not intended to replace private cryptocurrencies," and this remark once again emphasizes the Fed's conservative and cautious approach towards cryptocurrencies.