FED Leader says cryptocurrencies “completely fail” to become payment mechanism. Federal Reserve Leader Jerome Powell also added that the volatility of Bitcoin (BTC) is a sign of a bubbling market. Following the Fed Chairman’s statements, the BTC price fell sharply and wiped out more than $2,000.
FED Leader: Cryptocurrencies completely fail to be a payment system!
Federal Reserve Leader Jerome Powell said in his continuing word before the Senate Banking, Housing and Urban Affairs Committee that cryptocurrencies are failing as a means of payment:
Let me say this. They didn’t aspire to be a payment mechanism with cryptocurrencies, they failed completely (except, of course, for people who wanted anonymity for some random reason).
Jerome Powell adds that stablecoins are also growing incredibly quickly without “proper regulation.”
Jerome Powell: Bitcoin price volatility is a sign of market bubble
Jerome Powell also mentioned that Bitcoin’s volatility is a sign of the bubble in the market:
Financial conditions are extremely favorable. People finance things. SPACs and stuff like that are being made. We see that the price of Bitcoin is increasing and its price is decreasing. At times, I felt like it was a bit of a bubbly Sunday. You worry about this.
BTC is currently down about 45 percent since Jerome Powell named the coin a speculation tool in March. Cryptocoin. com
As we previously reported , currently BTC is changing hands at $31,600 and has wiped out more than $2,000, following their latest announcement.