Jerome Powell, chairman of the US Federal Reserve (Fed), has said stablecoins and cryptocurrencies will no longer be useful after the digital dollar is launched.
In a questions and answers session in the House of Representatives after a presentation of the situation of the economy in the country, Powell has said:
“You wouldn’t need stablecoins and cryptocurrencies if you had a digital dollar. This is one of the strongest arguments in his favor.”
He has added that the status of the dollar as a reserve currency is not in danger:
“There are no rules for stablecoins. If stablecoins become a significant part of the payment universe, which in our opinion is implausible, then it will be necessary to develop an appropriate regulatory framework, which does not yet exist.”
The Fed of Boston has recently reported the development of a prototype of the digital dollar will be ready by July.