New Federal Reserve Chair is Short on Bitcoin, Long on Blockchain
- Jerome Powell has expressed that DLT could one day be used in the US' existing financial systems.
On Tuesday, January 23, the United States Senate officially confirmed Jerome Powell as the next chairman of the Federal Reserve. Powell has spoken extensively about cryptocurrency and Blockchain Blockchain Blockchain comprises a digital network of blocks with a comprehensive ledger of transactions made in a cryptocurrency such as Bitcoin or other altcoins.One of the signature features of blockchain is that it is maintained across more than one computer. The ledger can be public or private (permissioned.) In this sense, blockchain is immune to the manipulation of data making it not only open but verifiable. Because a blockchain is stored across a network of computers, it is very difficult to tampe Blockchain comprises a digital network of blocks with a comprehensive ledger of transactions made in a cryptocurrency such as Bitcoin or other altcoins.One of the signature features of blockchain is that it is maintained across more than one computer. The ledger can be public or private (permissioned.) In this sense, blockchain is immune to the manipulation of data making it not only open but verifiable. Because a blockchain is stored across a network of computers, it is very difficult to tampe Read this Term technology in the past, and has a seemingly positive outlook about the possibility of the introduction of distributed ledger technology (DLT) into the US’ existing financial systems. However, he has also expressed that the technology is too new to be relied upon.
Historically, Powell has expressed interest in blockchain technology, although he isn’t necessarily a fan of Bitcoin or any other cryptocurrencies. In a speech Powell delivered at the Yale Law School last year, he acknowledged BTC’s role in bringing distributed ledger technology further into the world of mainstream financial technology.
He continued by acknowledging that the advent of cryptocurrencies has led some to believe that: “DLT will, in the long run, render parts of the banking and Payments Payments One of the bases of mediums of exchange in the modern world, a payment constitutes the transfer of a legal currency or equivalent from one party in exchange for goods or services to another entity. The payments industry has become a fixture of modern commerce, though the players involved and means of exchange have dramatically shifted over time.In particular, a party making a payment is referred to as a payer, with the payee reflecting the individual or entity receiving the payment. Most commonl One of the bases of mediums of exchange in the modern world, a payment constitutes the transfer of a legal currency or equivalent from one party in exchange for goods or services to another entity. The payments industry has become a fixture of modern commerce, though the players involved and means of exchange have dramatically shifted over time.In particular, a party making a payment is referred to as a payer, with the payee reflecting the individual or entity receiving the payment. Most commonl Read this Term system obsolete, as the intermediation of funds through the banking system will become unnecessary.”
However, Powell noted that because blockchain is such a new technology, there are many things about it that need to be developed. Powell expressed the need for “standardization and interoperability across different versions of DLT,” an important factor for adoption of DLT into real-world use.
In the Yale speech, Powell also voiced the need for legal structures that could properly regulate a DLT network that extended over multiple countries or other kinds of legal jurisdictions.
Powell in November: Crypto “Isn’t Big Enough” to be a Concern
In late November, Powell testified before the Senate Banking Committee as part of the process of his confirmation. During his testimony, Senator David Perdue of Georgia asked Powell about his views on cryptocurrency and blockchain technology.
Senator Perdue pointed out that Bitcoin’s market value had surpassed that of 29 of the S&P 500 Corporations in the US, and expressed concern that there was “another bubble that is some four or five times the size of the dotcom bubble.”
Powell responded: "In the long, long run, things – cryptocurrencies – of that nature could matter. They don't really matter today. They're just not big enough. There isn't anywhere near close to enough volume for it to matter."
Of course, his remarks came before a few important events: before the day that the crypto market cap surpassed half a trillion dollars in mid-December, and before Bitcoin’s rocket to nearly $20,000 in the wake of the induction of BTC futures trading at exchanges CME and CBOE (and subsequent fall).
However, he reaffirmed his interest in DLT: “We actually look at blockchain as something that may have significant applications in the wholesale payments part of the economy, something we pay close attention to."
On Tuesday, January 23, the United States Senate officially confirmed Jerome Powell as the next chairman of the Federal Reserve. Powell has spoken extensively about cryptocurrency and Blockchain Blockchain Blockchain comprises a digital network of blocks with a comprehensive ledger of transactions made in a cryptocurrency such as Bitcoin or other altcoins.One of the signature features of blockchain is that it is maintained across more than one computer. The ledger can be public or private (permissioned.) In this sense, blockchain is immune to the manipulation of data making it not only open but verifiable. Because a blockchain is stored across a network of computers, it is very difficult to tampe Blockchain comprises a digital network of blocks with a comprehensive ledger of transactions made in a cryptocurrency such as Bitcoin or other altcoins.One of the signature features of blockchain is that it is maintained across more than one computer. The ledger can be public or private (permissioned.) In this sense, blockchain is immune to the manipulation of data making it not only open but verifiable. Because a blockchain is stored across a network of computers, it is very difficult to tampe Read this Term technology in the past, and has a seemingly positive outlook about the possibility of the introduction of distributed ledger technology (DLT) into the US’ existing financial systems. However, he has also expressed that the technology is too new to be relied upon.
Historically, Powell has expressed interest in blockchain technology, although he isn’t necessarily a fan of Bitcoin or any other cryptocurrencies. In a speech Powell delivered at the Yale Law School last year, he acknowledged BTC’s role in bringing distributed ledger technology further into the world of mainstream financial technology.
He continued by acknowledging that the advent of cryptocurrencies has led some to believe that: “DLT will, in the long run, render parts of the banking and Payments Payments One of the bases of mediums of exchange in the modern world, a payment constitutes the transfer of a legal currency or equivalent from one party in exchange for goods or services to another entity. The payments industry has become a fixture of modern commerce, though the players involved and means of exchange have dramatically shifted over time.In particular, a party making a payment is referred to as a payer, with the payee reflecting the individual or entity receiving the payment. Most commonl One of the bases of mediums of exchange in the modern world, a payment constitutes the transfer of a legal currency or equivalent from one party in exchange for goods or services to another entity. The payments industry has become a fixture of modern commerce, though the players involved and means of exchange have dramatically shifted over time.In particular, a party making a payment is referred to as a payer, with the payee reflecting the individual or entity receiving the payment. Most commonl Read this Term system obsolete, as the intermediation of funds through the banking system will become unnecessary.”
However, Powell noted that because blockchain is such a new technology, there are many things about it that need to be developed. Powell expressed the need for “standardization and interoperability across different versions of DLT,” an important factor for adoption of DLT into real-world use.
In the Yale speech, Powell also voiced the need for legal structures that could properly regulate a DLT network that extended over multiple countries or other kinds of legal jurisdictions.
Powell in November: Crypto “Isn’t Big Enough” to be a Concern
In late November, Powell testified before the Senate Banking Committee as part of the process of his confirmation. During his testimony, Senator David Perdue of Georgia asked Powell about his views on cryptocurrency and blockchain technology.
Senator Perdue pointed out that Bitcoin’s market value had surpassed that of 29 of the S&P 500 Corporations in the US, and expressed concern that there was “another bubble that is some four or five times the size of the dotcom bubble.”
Powell responded: "In the long, long run, things – cryptocurrencies – of that nature could matter. They don't really matter today. They're just not big enough. There isn't anywhere near close to enough volume for it to matter."
Of course, his remarks came before a few important events: before the day that the crypto market cap surpassed half a trillion dollars in mid-December, and before Bitcoin’s rocket to nearly $20,000 in the wake of the induction of BTC futures trading at exchanges CME and CBOE (and subsequent fall).
However, he reaffirmed his interest in DLT: “We actually look at blockchain as something that may have significant applications in the wholesale payments part of the economy, something we pay close attention to."