The United States of America head of Federal reserve Mr. Powell Jerome has stated that the United States have no need to rush into cryptocurrency as they remain the world’s reserve currency.
In his words, “Since we are the world’s reserve currency, we actually think we need to get this right, and we don’t feel an urge or need to be first,” he said. “We effectively already have a first-mover advantage, because we’re the reserve currency.”
He also warned of a potential regulatory global answers to the decentralized coins.
We’ve been very focused on potential regulatory answers for global stablecoins, in particular, So that’s been a high-level focus, and that will continue to be a high-level focus because they could become systemically important overnight and we don’t begin to have, you know, our arms around the potential risks and how to manage those risks, and the public will expect we do and has every right to expect that. It’s a very high priority.”
What you should know.
The federal reserve system is the central banking system of the United States of America. With three key objectives for monetary policy.
1. Maximizing employment.
2. Stabilizing prices.
3. Moderating long-term interest rates.
The first two objectives are sometimes referred to as the Federal Reserve’s dual mandate. Its duties have expanded over the years, and currently also include supervising and regulating banks, maintaining the stability of the financial system, and providing financial services to depository institutions, the U.S. government, and foreign official institutions.
What you must know.
Currently there have been a lot of interest regarding the growing popularity of the world most valuable cryptocurrency Bitcoin by some western powers. Many are calling for reforms, while others are calling for outright regulation. Meanwhile the value of the cryptocurrency resides on its decentralized nature meaning that nobody owns it and all transactions are open for anyone interested to see.
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