Federal Reserve Chairman Jerome Powell Says Cryptocurrencies are ‘Vehicles for Speculation’

Photo by: André François McKenzie on Unsplash

The Federal Reserve chairman Jerome compared crypto to gold. He believes that cryptocurrencies are “really vehicles for speculation” and “No one is using them for payments.”
Cryptocurrencies are largely for making bets on price increases and haven’t reached the status of payment mechanisms, Federal Reserve Chairman Jerome Powell said Wednesday, CNBC reports.
“They’re really vehicles for speculation,” the central bank leader told The Economic Club of New York in a virtual interview with David Rubenstein, co-founder of the Carlyle Group.

“What people call cryptocurrencies, they’re really vehicles for speculation. No one is using them for payments, for example, like the dollar.”

“For thousands of years, human beings have given gold a special value that it doesn’t have” as an industrial metal, he said. “Nonetheless, for thousands of years, they have done that.” Noting that bitcoin and cryptocurrencies “are much more like that,” Powell emphasized, “They’re not really being actively used as payment.”

Powell’s predecessor at the Fed, Janet Yellen, is now Treasury secretary. In February, she told CNBC that she views bitcoin as “a highly speculative asset” and said it is not “widely used as a transmission mechanism” and is an “extremely inefficient way of conducting transactions.”
One revelation was that Powell has yet to meet with President Joe Biden.

Fed watchers have been speculating as to whether Biden will give Powell another term as chair when the current one expires in 2022. Asked in a CBS “60 Minutes” interview that aired Sunday on whether he wants another term, Powell demurred, saying he’s focused on “doing the best job I can.”

Powell, who was appointed Fed chairman — and harshly criticized — by then-President Donald Trump, said he has had no contact with Biden since the latter became president nearly three months ago.

Asked if he’s ever met Biden, Powell said, “I think I’ve shaken his hand, but I have not really met him and talked to him.”

Source: Cnbc.com

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