Federal Reserve Chairman Jerome Powell testifies before the Senate Banking Committee about Facebook’s proposed Libra cryptocurrency. He hopes for an era in which multiple currencies can be used in the United States.
“The network size of Facebook could make it, essentially, systemically important immediately.”
He raised “a lot of serious concern” about digital currencies like privacy, money laundering and financial stability. However, he was also positive about other cryptocurrencies.
On Thursday afternoon, he stated:
“Almost nobody uses bitcoin to pay, but they do use it as an alternative for gold.” It is a speculative store.
Powell stated that the United States should not return the gold standard in the past. Some interpreted his words as “drop gold, buy Bitcoin”.
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