US Federal Reserve Chairman Jarome Powell has said the country has no plans to ban digital currencies. However, he still believes that legal frameworks should be designed for some digital currencies, especially the stabilization of coins.
to the Report Crypto Potito, while China pursues its hostile policies against digital currencies by completely banning activities in this area, the United States seems to want to take a completely different and intellectual approach.
US Federal Reserve Chairman Jerome Powell reassured yesterday that the country will not ban the use of digital currencies. The US Congress, on the other hand, has questioned whether the government should use digital currencies as the new gold standard.
The gold standard is a monetary system in which a country’s currency is backed by gold, and each banknote represents a certain amount of gold.
The decentralized nature of these currencies has long been a thorn in the side of officials in the world’s most populous country. In any case, there have been many digital currency projects in China so far, and the country has long accounted for more than 60% of the bitcoin network hash rate.
However, the Chinese authorities have not only intensified their hostile approach, but also peaked it this year. The Chinese government reiterated old bans in May and imposed new ones that eventually led to the departure of Chinese miners. Recently, the People’s Bank of China banned all domestic organizations and institutions from participating in anything related to digital currencies, even if they are indirectly related to the field.
These issues caused problems for the market. Several prominent figures at the time called on US officials to take a completely different approach to dealing with digital currencies.
It seems that the United States wants to take the same approach, at least Jerome Powell says. The chairman of the US Federal Reserve announced at a meeting of the House Financial Services Committee that the government does not want to ban digital currencies. However, he still believes that legal frameworks should be designed for some digital currencies, especially stable currencies.
This new and optimistic US approach quickly had a positive effect on the market, resulting in higher prices for many digital currencies. The price of bitcoin has risen significantly in the last 24 hours, reaching above $ 48,000 for the first time in two weeks.
Will digital currencies replace the gold standard?
US Congresswoman Madison Cawthorn has taken the US decision to ban digital currencies a step further.
Shortly after the meeting, Catherine asked hundreds of thousands of followers on Twitter on September 30:
Why not use digital currencies as the new gold standard?
At least for now, the possibility of such a scenario seems imaginary. For years, the United States has not been able to provide a clear regulatory approach to digital currencies, let alone use them as the new gold standard.
In a weekly message to his followers on YouTube, Anthony Pompliano said that the possibility of such a thing happening in the United States is very low, because the country has been abandoning the gold standard for decades.
Paul Brady’s recent positive comments will be for the digital currency industry. The remarks came days after Sen. Pat Toomy said the United States should take advantage of the ban on digital currencies in China.