Donald Trump is scheduled to announce Jerome Powell as the new Fed Chairman. His thoughts on Bitcoin and Cryptocurrency. Some have called him a bitcoin skeptic, but from watching and listening to him, I just don’t see it.
I would say he is neither pro bitcoin, but more importantly, he is also not against it either. And that is the big one!
Here was his quote on the topic: “Nothing against bitcoin, nothing against you know, private currencies.… We generally look at some of the risk of cryptocurrencies associated with money laundering and those sorts of issues but we’re not broadly opposed or supportive of alternative currencies. I think from a Fed standpoint, I would say I am very cautious on the idea of a Fed digital currency. That’s something central banks are generally looking at, but I would say my approach to that would be very, very cautious.”
A few very important takeaways from his statement…#1 – He is not a fan of state backed cryptocurrencies. That is huge news at a time when several other large countries are working on exactly that.
#2 – He seems to be looking at regulating bitcoin/cryptocurrencies as opposed to banning them. Again, this is also big news as well in a time when many others are going the banning route.
The most important point in all of this wasn’t actually mentioned in that quote above but was mentioned by him in a previous speech. It has to do with WHY he said he didn’t like the idea of a state backed crypto…
According to Powell, he doesn’t like the idea of a state backed crypto because he feels like it will hamper technological innovation. Say what? You mean someone actually gets it?!Read more here...
Many are saying that the Fed Chairman position is actually the second most powerful one just below POTUS. This can be the reason why any comment or pronouncement from the Chair can have repercussions all over the financial markets everywhere in the world. I have read some comments expressing some concerns about Mr. Powell but according to the article above we have nothing to worry about as the man has show some good grasp about cryptocurrency and most likely he can never be the enemy of Bitcoin but at the same time we should not be expecting a walk-in-the-park treatment as well.
What is your opinion on Mr. Powell as the coming Fed Chairman?
Well, great news indeed! However, I do not find it in congruent with the goals of Bitcoins that it be regulated by States or governments. I think it will greatly lose its value should it be regulated because in that sense, it will be like banks that are kind of State-controlled since the latters' business is imbued with public interest and public trust. Otherwise stated, it will lose the edge it once had, i.e., for people to effectively control their money and earning through it all the same and even bigger than that of investing money on banks.
