Chairman of the Federal Reserve, Jerome Powell, in a recent testimony discussed cryptocurrency, by virtue of which BTC/USD sky-rocketed by 4% to $10,200. Right after Congressman Bill Foster, shared his concerns that they are struggling to keep up with the pace of the digital dreams of China, Bitcoin went off the roof.
China has made it pretty apparent time and time again about its aspirations of being a dominating force in the digital field and is well on its way to launch a centralized digital currency, the digital yuan. Bill Foster’s stressful concerns stem from the fact that the Beijing plan can pose a severe threat to the United States’s dollar long-standing status as a global reserve currency.
Bitcoin investors are not bitter about it, and in fact, they revel in this thinking that it might be a good thing. This is predominantly to do with the fact that BTC/ USD went skywards following Powell’s confession that the federal association would keep on working on the development of blockchain.
The cryptocurrency’s market response to the confessions was impressive, and it’s all sunshine and rainbows at the time of writing. Despite this, Jerome Powell outlined his stance once again that concern regarding the digital dollar’s privacy has not subsided. He added-
“The idea of having a ledger where you record everyone’s payments isn’t particularly attractive in the U.S.; it’s not a problem in China.
Libra Demanded Instant Attention According to Jerome Powell
Facebook’s Libra has been the most controversial project of the lot, Powell claims that it ‘really lit a fire’ and it was a big wake up call for the bank as Libra could be a significantly widespread system. When someone like Jerome Powell tells the industry that cryptocurrencies have the scope to effect, or even take over the dollar, it doesn’t really turn many people’s head that bitcoin went north.
However, Powell confessed that a digital dollar is not in their sight for the next five years at least, as its not the need of the hour.